Due to a drop in business performance and an economic recession, that results in a restructuring of U.S-based tech giants. In addition to this, Samsung Electronics U.S. semiconductor Device Solutions Americas (DSA) were also freshly laid off employees.
As per the industry report of Silicon Valley, Samsung Electronics DSA sent all of its employees a notice. This is to inform them that they are planning to cut 3 percent of its staff. The reason present for this cut-off is uncertain economic crises.
Some other big tech giants laid off their employees
Notably, some other big tech giants also cut short their employees. It includes Amazon (18,000), Google’s parent company Alphabet (12,000), Microsoft (10,000), and Dell Technology (6,650). As these companies also announced restructuring one after another.
In addition to this, the total number of employees at DSA stood at 12,00. Out of the same, nearly 30 people were entitled to the layoffs. And it’s about 3 percent of DSA’s total employees.
Samsung Electronics DSA implement the unpredicted reduction in personnel. Since, because of the reason, as complete semiconductor industry hit a recession due to the impact of a decline in demand as a result of the global economic recession.
Apparently, Samsung Electronics posted 270 billion won (US$204 million) in operating profit in the semiconductor division. This figure is from the fourth quarter of the last year, and it depicts a decline of 96.9 percent drop from the same period of 2021. While, in the first quarter of this year, the South Korean semiconductor giant is predicted to post a shortfall of nearly 2 trillion won respectively.
On the other hand, US-based semiconductor company Intel records sales of US$14 billion (18.2 trillion won). Whereas the operating loss of US$700 million (910 billion won) in the fourth quarter of last year. It is noted, this is the worst quarterly business performance in 50 years. Meanwhile, Intel is also started to cost cutting, by laying off thousands of employees at the end of last year.
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