Tough times - Samsung planning extensive personnel changes and executive position cuts

Tough times - Samsung planning extensive personnel changes and executive position cuts
By now, it's hardly a secret that Samsung Mobile is having a rough year as its smartphones undersold in key markets and overall earnings are reported as the worst in three years. According to a Reuters publication citing a South Korean newspaper, Samsung will embark on significant executive position cuts across the entire board, including up to 30% from the company's mobile division. 

As rumors of restructuring and people losing jobs are piling up ahead of the company's upcoming December personnel change announcements, morale among employees has hit a low, and even senior managers don't know what to expect.

An unnamed Samsung employee said that "management is distracted to the point where rank-and-file staff needed to work overtime and weekends to make sure development for major products stayed on track". A head of another Samsung business unit complained that "major strategic initiatives" have been postponed because managers don't know who to report to and are clueless as to who will eventually oversee them.

Making wide personnel changes must be an extremely cumbersome process in a conglomerate that numbers about 300,000 employees globally. To make matters more difficult, the son of the now-hospitalized Samsung Group chairman Lee Kun-hee, Jay Y. Lee (46 years old), is stepping in as the new Samsung leader and decisions are largely up to him. Of course, he isn't exactly "the new guy", as he has been an increasingly important part of Samsung since early childhood.

source: Reuters

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42 Comments

1. Bertelgeus

Posts: 126; Member since: Oct 15, 2014

Hello there, http://www.engadget.com/2014/10/28/samsung-find-my-mobile-exploit/ When are you going to fix this?

2. kombinatonz

Posts: 30; Member since: Aug 28, 2012

Not every samsung phone has "Find my Mobile"

3. Bertelgeus

Posts: 126; Member since: Oct 15, 2014

exploitability: 10/10

20. verbalize

Posts: 150; Member since: May 03, 2013

Sounds like the actions of Blackberry. And look at them now. The biggest mistake and the fall of Samsung is they went with everyone and there brother and used Android. The Chinese manufactures will wipe them out to be a huge embarrassment. They need their own OS and grow on it. Look at Windows, Apple. They get them into there ecosystem and the majority will stay with that ecosystem.

23. Ashoaib

Posts: 3298; Member since: Nov 15, 2013

I agree, they have to build on their own eco system but its too late now in my view. They should have started doing it two or three years ago. Samsung is mainly resposible for making android so famous. But now android is the reason they are facing tough competition from chinese. Samsung is keep trying to compete with apple but OS of their choice(android) is giving them competition within, so no worries for apple any more and no need for apple to play cheap tricks of law suits/icourts anymore... soon google will also not care about samsung... they have to make good devices in low and mid range catagory with good price tag. They are not apple who has a blind fan base and no matter what apple throws at them in whatever price, they will buy it. Nor samsung is considered status symbol like apple. Sammy's fans are mostly mature and sensible, so any mess up can drive them away. Also, they should not name every device galaxy. I am sick and tired of galaxy name, everything is galaxy. galaxy this, galaxy that...

11. AnTuTu

Posts: 1620; Member since: Oct 14, 2012

This tough time is going to be over very soon. They are moving fast, admitting and learning from there mistakes. These are positive changes for consumers because they are going to get some great products in near future.

15. Mxyzptlk unregistered

Go back to being Samsung not Samesung

4. Dastrix unregistered

They're desperate.

5. Mxyzptlk unregistered

That's what you get Samsung. It's called karma.

8. rd_nest

Posts: 1656; Member since: Jun 06, 2010

Karma?? Some of you illiterate people simply learn some buzz words from eastern countries, and act as if you know everything. Study religion before sprouting all non sense. Better to remain silent and be thought a fool than to speak out and remove all doubt.

14. Mxyzptlk unregistered

Should I call the waaambulance?

19. rd_nest

Posts: 1656; Member since: Jun 06, 2010

Ask your mom why she banged your head on the wall when you were a baby.

24. Ashoaib

Posts: 3298; Member since: Nov 15, 2013

+1 hahaha

27. Mxyzptlk unregistered

Lol so you resort to second grade insults?

22. Muayyad

Posts: 240; Member since: Oct 05, 2012

This is called competition and over-saturated market.

28. DaveElliott

Posts: 148; Member since: Sep 20, 2012

Exactly. While the erosion could have been less, it would have happened. Just too easy for the upstarts to hit the ground running at lower price points. They then can innovate on their own and may even in a few years surpass the original market leaders. Not like Samsung went full HP on itself.

6. spurs20

Posts: 3; Member since: May 13, 2014

It's not karma. Samsung did not do anything wrong.

9. sipha

Posts: 440; Member since: May 12, 2012

Should have changed the S5 designed..

12. AnTuTu

Posts: 1620; Member since: Oct 14, 2012

S6 will revolutionize the industry again. Mark my words.....

16. JunitoNH

Posts: 1946; Member since: Feb 15, 2012

I'm sure they wish they had the money used in stupid commercials.

13. Mxyzptlk unregistered

The S5 The countless Galaxy [name] releases The marketing attacks against apple TouchWiz

18. Dastrix unregistered

Well said. Those attacks/patent wars againts Apple were useless. Sammy thought it could go against Apple, but Apple's just like been there, done that. Sammy fell for it and got trolled big time.

7. cnour

Posts: 2305; Member since: Sep 11, 2014

A new Nokia?

10. Settings

Posts: 2943; Member since: Jul 02, 2014

Fire the Design and Touchwiz team!

32. dimas

Posts: 3383; Member since: Jul 22, 2014

Why blame the design team? They should fire the head marketing supervisors. If you haven't been in a corporate world, most designers just do things directed by marketing geniuses. Even if the designers want to create efficient UIs or chassis, marketing people will always interfere with it. Corporate politics killed samsung's profit.

17. willytbk

Posts: 252; Member since: Aug 15, 2012

Eventually commercial that bashing other products doesn't have good impact on their sales number anymore. Bye samsung, eat ur own karma. I hope LG can stands out !

21. TimCook

Posts: 450; Member since: Oct 23, 2014

Every dog has his day, Samsung wanted to mess with the bull and now they are getting the horns. Samsung always had big mouth and small balls and their economical failures are a result of that.

25. Ashoaib

Posts: 3298; Member since: Nov 15, 2013

why not they hire John Chen as CEO? that dude has some charisma and proven for turning things around

26. TRUVILLE

Posts: 146; Member since: Sep 11, 2014

Samsung didn't note it but the end was coming soon. Touch wiz is the worst ui ever made. All does half baked ideas. Lg HTC and other skin droids take notice, use stock android or game over! You've been warned!!

29. Palladium

Posts: 21; Member since: Nov 09, 2013

Their rise to the top was only because better in-house SoCs and large screens from the S3/Note2 days. Then once everybody and their mom started to make using the same Qualcomm SoCs, large screens while offering better Android, support and pricing they lost any sort of competitive advantage. Samsung should have took the Nexus 4 seriously as the rise of high spec/low pricing phones over two years ago and the competition is now burying them alive in every segment for being a stubborn, arrogant old fool.

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