Samsung Electronics has laid off 3 per cent of the employees at its US semiconductor subsidiary- Device Solutions Americas (DSA).
Business Korea, the citing source said that the Samsung DSA notified all of its employees of the job cuts due to uncertain economic conditions. The total number of employees at Samsung DSA is 1,200, out of which 30 employees have been laid off.
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A global economic recession has led to an overall reduction in the demand for semiconductors, which has further led Samsung Electronics DSA to reduce its personnel by an unusual percentage, said the report.
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Furthermore, the report has also mentioned that, in the previous quarter, (Q4 of 2022), the tech giant recorded an operating profit of $204 million in the semiconductor division.
Based on the numbers of the last quarter of 2021, the profit has declined by a staggering 96.9 per cent, which is expected to continue in the current quarter (Q1 2023).
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However, Samsung is not the only semiconductor company which has layoffs the workforce. Other chip makers like Intel have reported $14 billion in sales and a $700 million operating loss in Q4 2022, which was stated as the worst business performance in the past 50 years.
To compensate for this, the company began laying off thousands of employees in Q1 2023.
Inputs from IANS