Samsung employees worry about layoffs

Samsung Electronics workers have never been so anxious, according to Reuters, insiders say, as the annual staffing adjustment looms. Samsung is expected to slash jobs as the smartphone business has suffered its worst performance in three years.

Samsung is expected to announce its annual staffing adjustment in early December, according to the Korean business tradition. This practice allows employees to be distracted by the uncertainty of promotions, turnover, or layoffs, even when the business is performing well.

Layoffs appear to be more likely after a fall of nearly two-thirds per cent in third-quarter operating profits. Samsung's share of smartphones, squeezed by Chinese rivals such as millet in the low-end market, and Apple's iphone in the high-end market, has suffered year-on-year declines in the past three quarters, prompting speculation that Shen Zongjun, the head of mobile operations, will leave office.

"Employees are very upset, even senior management is asking for information. "said one Samsung employee. Samsung declined to comment on potential staffing changes, which are often kept secret from employees directly affected until one or two days before the official announcement.

The daily economic news of South Korea reported that Samsung would cut 30% of top jobs, 30% of them from the mobile sector. Samsung hired nearly 290,000 employees last year, One-third of them in South Korea. (Compiling/Xiao Yu)