China’s Samsung Electronics to start layoffs, compensation program has been tentatively determined

On the afternoon of November 6th, samsung electronics will make big job cuts in China, and 11 branches and offices across the country will eventually merge into five. Recently, sources said that Samsung has begun to communicate with the staff compensation program, including compensation and year-end awards, some employees can also be compensated a Samsung phone.

中国三星电子启动裁员 传赔偿方案已经初步确定

Samsung has also tried to return to the Chinese handset market after the Note7 self-ignition incident. Samsung mobile phones accelerated in the Chinese market in the second half of 2018. At the end of 2018, Kwon Gui-hyun, president of Samsung Electronics Greater China, called out a slogan to return to the chinese battlefield. But after a year, Samsung’s share of the Chinese market is still hovering around 1%, and things have never improved. In September, Samsung shut down its last mobile phone factory in Huizhou, China.

Samsung Electronics responded after news of the job cuts on April 4th, saying the trip was an effort to boost competitiveness-related business in China to boost rapid growth in China’s 5G market, which, while different in terms of approach and angle, was an indirect admission of job cuts.

Samsung’s response to the “job cuts”:

“In response to the uncertainty of the internal and external business environment and the highly competitive market environment, Samsung Electronics has adjusted its business to drive rapid growth in China’s 5G market.

In line with the development needs of the 5G era, Samsung Electronics has adjusted its product line with 5G products as its core, and strengthened its strategic cooperation with leading domestic retail channel providers to further strengthen Samsung Electronics’ mobile business in China.

As part of its normal business activities, the adjustment has enhanced Samsung Electronics’ competitiveness in the Chinese market and provided the necessary impetus for the long-term development of the company. In the 5G era, Samsung Electronics will continue to provide better products and services to Chinese consumers. “

As for the number of job cuts, there were previous media reports of nearly 2,000, but a source close to Samsung said that while the exact number is not certain, there will not be as many as 2,000.

In the last two days, there have been news about the compensation for layoffs, according to reported: Samsung China held an internal briefing on the afternoon of November 4, will be in November 8 to communicate with the laid-off workers. The compensation for the layoffs includes the N-1 award, the year-end bonus and a Samsung handset, which allows employees to select the Samsung A-Series and S-Series based on their seniority. Redundancy compensation “together estimates that redundancy compensation is probably the level of N-3”

Sina Digital asked Samsung about the matter, there is no immediate response.

The layoffs are the final phase of Samsung’s three major localization strategies in China, following the localization of the organizational structure in 2017 and the localization of products in 2018.

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