Samsung Mobile to freeze the salaries of its employees, blame the plummeting profits

Samsung Mobile to freeze the salaries of its employees, blame the plummeting profits
With retail profits slipping away for a third consecutive quarter, Samsung is reportedly trying to cut down losses by freezing the salaries of its employees in 2015. This is one of the harsher moves that the South Korean top dog is seemingly about to undertake. 

That piece of news is coming from an unnamed Samsung official, which claimed that “the management and employees have reached an agreement on fixing wages”

Another Samsung representative later claimed that the exact reason for this unpopular decision is the slow rate at which China's economy is growing of late, combined with the weaker position of the Japanese Yen.

As a refresher, last year Samsung cut 30% of the personnel working in its mobile division. Later on, many low-tier executives also got the pink slips. What's more, for the last financial quarter, Samsung reported another disappointing financial report.

Apparently, this will be the first time Samsung has hard-fixed salaries since 2009. Certainly, the company is swearing by the upcoming Galaxy S6 and S6 Edge, hoping that they'll sell better than the Galaxy S5 and will mark the the turning of the tides for Samsung.

source: YonhapNews via SamMobile

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77 Comments

1. TyrionLannister unregistered

If the S6 doesn't have microSD: 'you spin my head right round right round, when you go down when you go down down'

13. Djz89

Posts: 447; Member since: Aug 25, 2014

And the glass back doesn't help either.

42. tdslam720

Posts: 70; Member since: Jan 05, 2015

lol really Tyrion? After all the hype, you gonna let a MicroSD card get you down?

49. mdw864

Posts: 17; Member since: Jul 25, 2012

Yes. Tyrian has a point. Read my comment and you'll understand why.

48. mdw864

Posts: 17; Member since: Jul 25, 2012

I don't know about if it's going to have a microsd slot or not, but I agree with Tyrian tdslam720. If I don't have an microsd slot I'm not getting it. I have 4 apps on my s5 that I NEED to run my business that are over 2 gigs. One of them is 4.1 gigs. Plus I like playing WWE and I let my son play Batman Arkham and NBA Jam. Those are the only three games I have and combined they are over 4 gigs. I have 7 apps using 15.23 gigs of storage on my s5. The s5 only comes with about 10 gigs of free space. Now on to my business. I'm a videographer. I shoot everything in 4k because that's what my clients demand. I'm working on 5 projects right now the smallest one is 20 seconds and it's 300 mb. The biggest is 40 minutes and it's pushing 80 gigs by itself. I need my expandable memory because that's not including family and fun pictures. Why don't I get a camera or camcorder you ask? I have three. But my three s5's (two are dedicated to solely B roll video) shoot a better higher quality video so I'll continue giving my clients the quality yet demand.

51. tdslam720

Posts: 70; Member since: Jan 05, 2015

Well you're SOL, either deal with fixed storage and cloud, or spend 700 dollars on an inferior offering from HTC/LG/Moto/Sony

73. mdw864

Posts: 17; Member since: Jul 25, 2012

I don't like cloud. Yes, I am one of those people who scared of hacks. Nothing bad or personal goes on there, but if something gets out, I rant it to be because I chose to put it out there. Inferior phones... maybe I should go to school and learn how to make a quality phone that everyone would like. Then give them a choice of Apple or Android operating system. I hereby now patent that idea! Lol

54. mdcsr141

Posts: 1; Member since: Feb 26, 2015

If the Galaxy s6 has 128GB of built in storage, are you still not going to purchase it, because it doesn't have an MicroSD

74. mdw864

Posts: 17; Member since: Jul 25, 2012

Nope, I most certainly will not. I have multiple 128gb miscrosd cards. I simply swap them out depending on which client I'm working with. Buying expandable memory is a hell of a lot cheaper than buying multiple devices. The only reason I have 3 s5's right now is to get multiple camera angles simultaneously. I'd rather stick with 3 devices versus 9. (Each of my 3 s5's have three 128 gb microsd cards and I'm thinking i may have to buy 3 more by July)

50. mdw864

Posts: 17; Member since: Jul 25, 2012

So as far as hype goes, I don't care about hype. I only care about my NEEDS in any product I purchase. And I NEED expandable memory. Unless they start making phones with 2TB storage capacity.

52. bur60

Posts: 981; Member since: Jul 07, 2014

Yes. i didn't buy the most expensive Samsung microsdxc card to not use it. It's sad how Samsung took the Apple way by forcing buyers to get fixed memory (if they really want S6 ofc). I just scrapped S6 off my list.

53. TyrionLannister unregistered

Ohh, so you record 4k. Then S6 would be your best bet. Let me tell you why: 1. Exynos 7420 is better than S810. It won't overheat and even supports 6k recording. 2. UFS II storage that's like 3 times faster than regular NAND and takes only 50% power. Means no heating up, less battery drainage and prolonged 4k recording. Current phones have a limit of 5 min of 4k. S6 won't have that. You should go for the 128 GB variant. And use USB OTG for additional storage( upto whatever storage). Regarding games, I think the 64 GB internal would play nice too. For video recordings, I solely recommend USB OTG. It's awesome. My condition is like S6 or nothing as M9 seems ultra disappointing. I think I'll have to wait a long time for a decent phone( may be G4 if they don't screw it up like G3 or Flex 2).

56. MySchizoBuddy

Posts: 159; Member since: Aug 23, 2011

No one gives a damn about 4K

57. TyrionLannister unregistered

Check the comment of the guy I'm replying to. He does. I don't.

66. bur60

Posts: 981; Member since: Jul 07, 2014

My Z3compact records 15 minutes easily with 4k tho

75. mdw864

Posts: 17; Member since: Jul 25, 2012

I don't care about 4k either. Is the clients that I work for the care about it.

76. mdw864

Posts: 17; Member since: Jul 25, 2012

USB OTG huh? I may have to check that out. I had never heard of it

64. engineer-1701d unregistered

Love that song but I always say office salary people paid way too much

2. tiara6918

Posts: 2263; Member since: Apr 26, 2012

It will continue to freeze when apple releases its new iphones this year. Let's hope the s6 will have higher sales than s5

6. Mutation.X

Posts: 185; Member since: Feb 09, 2015

After the S2, Samsung has been failing.

9. hipnotika

Posts: 353; Member since: Mar 06, 2013

nooo ! s3 had a very succesfull sale. you are wrong. after s3, samsung has been failing

15. maherk

Posts: 7050; Member since: Feb 10, 2012

In case you didn't know, not the S2, but the S3 was Samsung's major hit, it was basically the real introduction of Android into many markets including the US. Now what are the reasons behind Samsung's recent struggles? 1st it started with them flooding the market with different variants of their flagships, inconsistent TW, laziness in styling and offering the same design on every phone whether it is a flagship or a low ranger, and the fake chrome trim that chips easily. It is true that they have improved all what i ve mentioned drastically starting from the 2nd half of 2014, but they did it by the time Apple was introducing their 4.7" and 5.5". I believe that Samsung will have a much better year than 2014, and hopefully the Z4, G4 and M9 will prove to be a great competitors to the S6, because this was one of the reasons Samsung have became this lazy knowing that the majority of those who wants an Android phone will end up pocking a Galaxy phone.

3. greenelektron

Posts: 537; Member since: Sep 10, 2014

Instead of laying off people or cutting their salaries, they would just freeze their salaries? These people has family members to feed! Samsung logic.

12. wiiandds

Posts: 64; Member since: Mar 15, 2013

at least they all still have a job

19. Rydsmith unregistered

Freezing salaries != not being paid. And they did lay off people, about 30% actually.

44. memeON1

Posts: 34; Member since: Nov 26, 2014

freezing salary = no increase Different from not getting paid.

45. wiiandds

Posts: 64; Member since: Mar 15, 2013

No, it means they will not be recieving any pay incease. They still will be getting pay, just at the same amount. This will help avoid more layoffs.

70. Rydsmith unregistered

That's what I said. != is the correct way of typing =/= What do they teach in schools now?

72. refillable

Posts: 1071; Member since: Mar 10, 2014

Google says "Your search '!=' did not match any documents." Is your school teaching something wrong?

4. Mutation.X

Posts: 185; Member since: Feb 09, 2015

More like blame the design and cheap plastic. They need to use copper, liquid metal, rhodium silver, Sapphire, and brass. Screams quality. Look at iPhone's. Look at Lenovo.

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