Samsung Electronics, the world’s leading manufacturer of smartphones, TVs, and memory chips, is reportedly planning to cut up to 30% of its overseas workforce in specific departments, according to sources cited by Reuters.

The report reveals that Samsung has instructed its global subsidiaries to reduce sales and marketing staff by around 15% and management personnel by up to 30%. The layoffs, expected to be completed by the end of this year, will impact jobs across regions including the Americas, Europe, Asia, and Africa.

While sources confirm the layoff plan, details regarding the number of affected employees and specific countries or business units remain confidential.

Samsung is under pressure in key sectors. In May, the company replaced the head of its semiconductor division to address the ongoing chip shortage and compete with SK hynix in supplying high-end memory for AI chipsets. In the premium smartphone market, Samsung faces fierce competition from Apple and Huawei, while in chip manufacturing, it trails TSMC.

According to one source, the layoffs are intended to address the global slowdown in tech product demand caused by economic downturns. Another source mentioned that Samsung aims to boost profits by cutting costs.

In response to the reports, Samsung stated that workforce adjustments in its overseas operations are routine measures aimed at improving efficiency. The company emphasized that there are no specific targets for the reductions and that production staff will not be affected.

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As of the end of 2023, Samsung’s 2024 sustainability report indicated that the company employed 267,860 people, with over half (147,104) based overseas. The report noted that most employees work in manufacturing and development, with 25,136 in sales and marketing, and 27,887 in other areas.

Sources also disclosed that Samsung issued the global layoff directive about three weeks ago. In India, where Samsung employs around 25,000 people and generates annual revenue of approximately USD 12 billion, mid-level employees have reportedly been offered severance packages, with the total number of layoffs in the Indian subsidiary potentially reaching 1,000. Production in India is currently disrupted by wage strikes.

Samsung’s plans come as the company navigates slowing global demand and intensifying competition across its key markets.