Samsung Initiates Major Restructuring in Mainland China: Sales Team Slashed by 8% Amid Underperformance, with Up to 30% Workforce Reduction Expected by Next Year

Samsung is reportedly planning to reduce its sales team in mainland China by 8% due to underperformance. This is seen as the beginning of a wider restructuring effort, which could result in a 30% reduction of Samsung's workforce in mainland China by the upcoming year.

A substantial reorganization effort has begun which could potentially lead to a reduction of Samsung's workforce on the mainland by nearly 30% by next year, according to a company representative as reported by Seoul Economic Daily earlier this week.

According to research firm IDC, Samsung, the global leader in smartphone sales over the last two quarters, has already started accepting voluntary resignations, as per the report. If the number of voluntary departures doesn't meet their goal, Samsung is anticipated to implement selective lay-offs.

Samsung's China division has announced, in a conversation with Chinese digital news platform Jiemian, that they are undertaking staff changes to boost their operational effectiveness and bolster their position in the market. They stated that their intention is to remove surplus roles to optimally distribute resources and increase the organization's productivity.