New Delhi: Samsung Electronics has laid off 3 percent of its US semiconductor subsidiary Device Solutions Americas (DSA). Citing sources to Business Korea, Samsung DSA said it has notified all of its employees of job cuts due to uncertain economic conditions.
The total number of employees at Samsung DSA is 1,200, of which 30 employees have been laid off. (Also read: ‘Your deposits will be there when you need them’: US President Joe Biden on SVB crisis)
The global economic downturn has led to a general decline in demand for semiconductors, which has caused Samsung Electronics DSA to cut its workforce by an unusual percentage, the report said. (Also Read: Mumbai: Woman Switched From iPhone To Android Phone To Activate Credit Card, Cheated Of Rs 7 Lakh – Here’s How)
Additionally, the report said that the tech giant earned $204 million in operating profit in its semiconductor division last quarter, Q4 2022.
Based on Q4 2021 numbers, profits fell 96.9 percent, which is expected to continue in the current quarter. However, Samsung is not the only semiconductor company to follow the layoff path.
Chipmaker Intel reported sales of $14 billion and an operating loss of $700 million in the fourth quarter of 2022, its worst business performance in 50 years. To compensate, the company began laying off thousands of employees in the first quarter of 2023.