Samsung says planning job cuts in some Asian operations

Samsung Electronics said Wednesday it was planning to cut jobs in some of its Asian operations, after a report that one in ten posts in affected markets could be axed.

The world's largest memory chipmaker is modifying staffing levels in Southeast Asia, Australia, and New Zealand, a company spokesman told AFP, adding that "the adjustments include job cuts".

The "routine workforce adjustments" are carried out "to improve operational efficiency," said Samsung Electronics in a statement.

"The company has not set a target number for any particular positions," added the maker of Galaxy smartphones.

Bloomberg reported however that the layoffs could affect about 10 percent of the workforce in those markets.

The Suwon-based firm employs more than 267,800 workers, with more than half of its total workforce abroad.

The cuts came after US chipmaker Intel announced in August that it would slash more than 15 percent of its workforce as it tries to streamline operations following a reported loss of $1.6 billion in the second quarter.

In contrast, Samsung saw its fastest growth since 2010, with operating profits soaring in the second quarter to 10.44 trillion won, as chip prices rebounded and demand for generative AI continued to grow.

The figure represents a 1,462.29 percent increase from 670 billion won in the same period a year earlier, exceeding market expectations.

The company is the flagship subsidiary of South Korean giant Samsung Group, by far the biggest of the family-controlled conglomerates that dominate business in Asia's fourth-largest economy.