Samsung laid off 3% of its employees in its chip division in the US. This move comes after the economic downturn in the semiconductor space.
We’ve been seeing a wave of mass layoffs at tech giants lately. So much so that many companies, from Meta to Amazon, from Twitter to Microsoft, laid off thousands of their employees. The reason behind this was that they wanted to reduce costs due to economic problems.
Today, it turned out that another company made a similar move and joined the list. South Korea-based, as reported by Business Korea. Samsungdecided to fire some of its employees in the USA.
Samsung lays off 3% of employees in its chip division in the US
Samsung’s layoff move is located in the USA semiconductor department affecting. According to the information received, the company announced that its employees in this department named “Device Solutions Americas” 3% of he quit his job. Let’s say that there are 1200 people in total in the department, that is, 30 people have been laid off. Although the number is not thousands like other companies, it reveals that even those who make billions of dollars profit every year like Samsung are affected by the experiences.
It is also possible to say that this move of Samsung is compatible with the economic recession in the semiconductor industry after the decline in demand. The South Korean company made a profit of $204 million on the semiconductor side in the fourth quarter. This is compared to the fourth quarter of 2021. There was a 96.9% decrease had revealed. The decrease is expected to continue in the current quarter as well.
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Due to the bad course in the industry, a similar move from Intel Let’s add what we saw. US semiconductor giant, in the fourth quarter of 2022 $700 million damage explained. Subsequently, thousands of people were laid off at the beginning of 2023.