The network division, responsible for 6G (6th generation) communication, one of Samsung Electronics’ next generation businesses, is entering an emergency management system due to poor performance. According to the IT industry, Samsung Electronics’ network division will hold an employee briefing on the 10th and Division Manager (CEO) Kim Woo-jun will announce plans to strengthen competitiveness, including business reorganization and downsizing costs. Firstly, in order to save money, it was decided to require executives to use economy class instead of business class when traveling on business trips, and to use the same level of accommodation as ordinary employees. At the end of last year, the number of executives in the network division of Samsung Electronics was 37. It is expected that a plan will be included to allow employees sent from the wireless division or the video display division to expand their business to return to their original sites only if they wish. In addition, it was decided to reorganize the business structure from focusing on growth to focusing on profitability.
Samsung Electronics headquarters in Seocho-gu, Seoul (file photo) 2023.3.21/News 1
The decision of the Network Division of Samsung Electronics to enter crisis management has a significant impact on the recession of the global communications market. As 5G infrastructure investment is completed globally, no additional demand occurs. Samsung Electronics’ network division posted sales of 3.78 trillion won last year, down 29.7% from the 5.38 trillion won in 2022. An IT industry official said, “With 5G investment over, sales will decrease, but burden huge as 6G technology continues,” adding, “We have to wait until 6G is commercialized, but it’s not easy. situation.” 6G is a business that Samsung has identified as its next generation business. Earlier this year, Chairman Lee Jae-yong visited the 6G technology research and development site as his first management move.
Global communication equipment majors have also started tightening measures. According to the Wall Street Journal, Sweden’s Ericsson, the world’s second largest telecommunications equipment company, plans to lay off 8,500 global workers this year. Last March, 1,200 people were laid off at the Swedish headquarters, and last month, 240 workers at the Chinese research facility were fired. Finland’s Nokia, which is third in the industry, also plans to lay off 14,000 workers, or 16% of its total 86,000 employees, by 2026. This means that up to 1.2 billion euros (about 1.8 trillion earned). Cisco, the second largest telecommunications infrastructure company, is also said to be laying off thousands of people this year.
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