Amidst nosediving sales of its flagship smartphones, Samsung is reportedly showing the door to its employees in South Korea. Ten percent of its office goers in Korea are going to be sacked from the company as the smartphone giant looks to cut costs to counter its losses in the market.
The smartphone segment, which has remained one of the primary profit generators for Samsung is seeing a negative trend in sales. The ones who dictated the smartphone market are the worst affected, with Samsung losing close to $40 billion in market valuation in the last five months.
With the rise of budget smartphone makers, Samsung has found it difficult to stay at the top. The company is reportedly also going to cut down on its overall expenditure by up to 50 percent by 2016.
Samsung newest releases have also been criticised heavily. Its latest offering the Galaxy S6 has failed to take the market by storm, a storm which the company was desperately hoping for. This continuing trend since the last year has set back Samsung’s profits by 8 percent.
This trend however didn’t affect the company’s chip and television segment as they have managed to net considerable profits for the company.
Samsung’s strategy to launch its Galaxy range of smartphone before the Apple’s mega event in September backfired to the company. Apple too is keen on retaining its dominance as the upstart underdogs like Xiaomi are defining new class for smartphone segment .