Samsung shares hit record high, but the company slashes bonuses for the mobile division


Buoyed by strategy evaluations and management structure reshuffles, Samsung shares are hitting record high today. The company is reportedly having internal meetings between departments this week to plot the course of action on the way to earn at least $25 billion of operating profit next year. These are encouraging signs that Samsung is trying to put the Note 7 recall behind its back, and look forward to 2017, the Galaxy S8, and the OLED iPhone 8 which is said to come with Samsung display panels.

That's not to say that the Note 7 episode has gone without repercussions at the company, though. After writing off $5 billion in profit for this and next quarters, Korean media is reporting that the mobile department will bear the brunt of the consequences. 

Samsung has allegedly slashed the year-end bonuses of the division from 50% to 17% of the monthly income. That has been Samsung Mobile's incentive in previous years when the smartphone unit was the bright shining light in the company, but this year it will be the employees in the semiconductor department who will get the 50% bonus instead.

source: Korea Herald (1),(2)

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