Rumours started flying like bats for the last couple of days indicating that Samsung will cut about 10% of its workforce that it houses in its headquarters amidst declining smartphone sales. It has about 100,000 working individual in the headquarters implying that 10,000 people will lose their jobs.
But Samsung has released a statement that it is not cutting the jobs but simply relocating them where their services are better utilized due to strategic and administrative reasons. What this means is that the Samsung headquarters which mostly concentrates on development of smartphones and their technologies does not need so many people anymore as it is developing less and less number of smartphones in the present situation to reduce the losses incurred and get back into a position of strength in the mobile industry.
The people who are relocated now will work on other technologies that will involve the internet of things and the TV division. Samsung is a company whose business involves manufacturing of chips to rams to ssd. It has requirements in almost all the department. The slowdown in the smartphones sales has enabled Samsung to divert it workforce to other department without recruiting new members.
Smart move Samsung.