Samsung Lost $44 Billion USD From April To September 2015, Cuts 10,000 Jobs
Samsung feels the impact of its gross business missteps for 2015, and reacts accordingly: By slashing 10% of its workforce.
According to reports from Bloomberg and Business Insider, Samsung suffered around $44 billion USD in losses. This figure quotes Samsung’s losses from April to September 2015. The blame is on the commercial failures on the S6 flagships, with Bloomberg noting that these flagship releases caused “five straight monthly declines.â€
This 10% workforce cut will result in the loss of around 10,000 employees from Samsung’s South Korean headquarters.
According to Chung Chang Won, a Nomura Holdings Inc. analyst based in Seoul, “Samsung’s preparing to tighten its belt as it isn’t likely see rapid profit growth in the years to come.â€
With the company making design cuts in the wrong places, and adding practically useless albeit flashy features, it’s time it goes back to the drawing board and focuses on brainstorming on true innovation.
Samsung fans have complained about how Samsung took out the MicroSD slot on its flagship devices, as well as scrimped on the water and dustproofing that the previous flagship devices enjoyed. These two features alone were enough to cause Samsung faithfuls to look for other options.
More than that, those who stood loyal by the brand when it rolled out the S6 and S6 Edge were disgruntled by the supply to demand mismatch for the S6 Edge. While a good number of the consumers settled for the S6, the price difference caused Samsung major losses, which may have contributed to that $44 billion USD loss.
To review, Samsung enjoyed earning $171 billion USD in sales in 2014, but Business Insider notes that this figure is expected to plummet to around $166 billion USD this year. Does that $5 billion USD projected annual loss justify booting 10,000 people of their livelihood? Will these cost-cutting measures translate into better financial health for the company? Only time will tell.
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For more on corporate news about Samsung, check out these Droid Report articles:
Samsung Experiences Massive Growth Setbacks For 2015: https://www.droidreport.com/samsung-experiences-massive-growth-setbacks-2015-10177
Samsung Ordered To Pay Apple $548 Million USD, Appeal Junked: https://www.droidreport.com/samsung-ordered-pay-apple-548-million-usd-appeal-junked-10773