Samsung has laid off one-third of its manpower in China as a part of its business strategy in an attempt to improve its competitiveness in the technological industry.
According to The Phnom Penh Post, Samsung has faced intense competition from local Chinese technology companies such as Vivo, Huawei, and Oppo. At present, the company was said to have been interested in commercializing its 5G technology and launch the latest handsets in China to recover its financial losses.
Last Monday, the company announced that they have adjusted their strategy as a precautionary measure. It was said to have suffered from business losses due to internal and external business environment drawbacks and intense competition.
The South Korean technological giant also adjusted its product lines and realigned the 5G technology as its latest stronghold. The report indicated that the company looks forward to developing strategic cooperation with its domestic retail distributors and those engaged in the Chinese market.
On top of this, Samsung has also decided to modify its normal business operations for the benefit of the long-term development of its business. According to research director at Counterpoint Technology Market Research James Yan, Samsung would focus all its efforts on the 5G handset products and engage more in low-end markets such as China.
In a statement, Yuan said, "Samsung still has some opportunities in the niche smartphone segment, especially in first-and second-tier cities, in the face of mounting competition from domestic rivals. It will take up about one to two percent market share in China in the future."
In other news, the South China Morning Post reported that Samsung laid off some of its workers in its largest Chinese factory. After operating for 27 years, a notice hung on the establishment which indicated that Samsung has suspended recruitment thereto.
A local resident, who was present since the start of operations of the company Zhong Ming, said that he has been hearing rumors that Samsung would close its factories. A part of the rumors indicated that most of the workers who have been residing nearby the factory would be laid off.
He also added that after the closing of Samsung's last smartphone factory in Huizhou last December, the locals, including landlords, hawkers, workers, and business people believe that the Chenjiang factory may also follow suit.
Vice president of Transsion Arif Chowdhury said that Samsung's competitors have gained advantage by thinking globally instead of acting locally. The other brands' units were perceived to be more technologically savvy which hurt Samsung's revenue greatly.
