News: Young faces to replace older executives.
Samsung is reportedly planning to remove managerial-level jobs in an attempt to cut costs.
The cuts are expected to happen from its manufacturing facilities and the company is negotiating the terms with the employees. It is trying to lure them to opt for a voluntary retirement scheme (VRS).
Samsung Heavy Industries is reportedly accepting VRS letters from employees working in loss-making divisions.
One such division is the shipbuilding unit, which is expected to have an operating loss in excess of £566.9m.
Similar reports surfaced in September, but Samsung dismissed them saying that the company was only planning to relocate its workforce.
The Korean Times cited an unnamed official as saying: "Samsung‘s top priority is to save costs. Average workers with mediocre performance are being advised to leave the company with a sizable compensation."
Apart from Samsung Heavy Industries, Samsung SDI and Samsung Electro-Mechanics are also likely to cut staff.
Cheaper Chinese rivals have taken a huge bite from Samsung’s smartphone market share, and its chip business is also expected to face tough competition from Intel in NAND chips and China’s semiconductor business.
The South Korean giant is expected to announce the reshuffle of its top and middle level executives during the first week of December.
According to reports, older division heads and underperforming executives are expected to be replaced by younger people.