Samsung plans sweeping global job cuts, sources say

STORY: Samsung plans to cut up to 30% of its overseas staff at some divisions.

Reuters exclusively revealed the news after speaking to sources.

The world's top maker of smartphones, TVs and memory chips has told subsidiaries worldwide to reduce sales and marketing staff by about 15%, according to two sources.

They said it has also called administrative staff to be reduced by up to 30%.

One source said the plan will be implemented by the end of this year and would impact jobs across the Americas, Europe, Asia and Africa.

In a statement, Samsung said workforce adjustments conducted at some overseas operations were routine, and aimed at improving efficiency.

It said there are no specific targets for the plans, adding they are not impacting its production staff.

Official data showed Samsung employed 267,800 people as of the end of last year, with more than half based overseas.

A source said the so-called "global mandate" on job cuts was sent about three weeks ago.

The job cuts come as Samsung grapples with mounting pressure on its key units.

Its chip business has been slower than its rivals in recovering from a severe downturn in the industry, and profit at the unit hit a 15-year low last year.

In May, Samsung replaced the head of its semiconductor division to overcome a "chip crisis".

It aims to catch up with smaller rival SK Hynix in supplying high-end memory chips used in artificial intelligence chipsets.

Samsung also faces tough competition from Apple and China's Huawei in the premium smartphone market.

It was not immediately clear if Samsung will also cut jobs in its headquarters South Korea.

Job cuts could stir labor unrest at home and one source cautioned it could be a politically sensitive issue.

A South Korean workers' union at Samsung Electronics recently went on strike for several days, demanding higher wages and benefits.

Shares in Samsung Electronics traded at their lowest level in 16 months on Wednesday.