Samsung will freeze its employee’s salaries due to poor performance in the last year. This will happen for the first time in six years. Only South Korean employees will have their salaries frozen.

Last time Samsung froze their employee’s salaries, it was in 2009. Samsung is trying to cut costs according to some analysts. This is the first annual profit decline since 2011 as Samsung lost market share to Apple.

Samsung’s main competitors last year were Apple due to their improved screens and other Chinese brands that made high end phones with a low cost like Huawei and Xiaomi.

Samsung is also going to be unveiling its Samsung Galaxy S6 and Galaxy Edge at the MWC in Barcelona. Samsung already froze its executive’s salaries as part of their belt tightening measures.

A company spokesperson said that these measures are likely to inject a sense of crisis into the company employees. The employees were receiving steady salary growth and that made them a little lazy so they definitely needed a wakeup call. They were also receiving huge bonuses so they had to be reminded that they work for a company that is having a financial crisis.

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