Connect with us

Labour

Samsung Electronics lays off staff in Singapore and other key markets amid global cuts

Samsung Electronics has begun laying off workers in Singapore and other key markets as part of a global restructuring. The layoffs, announced on 1 October 2024, could affect around 10% of staff in affected regions. The company aims to preserve manufacturing roles while cutting management and support positions.

Published

on

Samsung Electronics is laying off employees in Singapore as part of a broader global restructuring aimed at reducing its overall workforce.

The job cuts, which are expected to affect up to 10% of the company’s headcount in the region, were announced to staff on 1 October 2024.

According to a report by Bloomberg, employees from various teams were called into private meetings with human resources and their managers to discuss retrenchment and severance packages.

These layoffs are part of a wider plan by Samsung to reduce its global headcount, targeting thousands of jobs across several markets, including South-east Asia, Australia, and New Zealand.

Although Samsung has not set a specific target for job cuts in Singapore, individuals familiar with the matter said the reductions could reach around 10% of the workforce. The actual figures may vary depending on local labour regulations and operational needs.

The tech giant has made it clear that the cuts are focused on improving operational efficiency, particularly in management and support roles, while it aims to preserve manufacturing jobs.

“Some overseas subsidiaries are conducting routine workforce adjustments to improve operational efficiency,” a Samsung spokesperson said, noting that no specific positions had been targeted. The spokesperson also reiterated that these are part of routine adjustments, not a reaction to any specific financial crisis.

Samsung’s workforce in Singapore, which serves as a hub for the company’s South-east Asia operations, is one of the key groups affected by the cuts.

The company’s employees across different departments were informed of their fate during the private meetings, which were held earlier this week.

The layoffs come as Samsung faces growing challenges in its core markets, including a drop in demand for memory chips and increased competition from rivals such as SK Hynix and Taiwan Semiconductor Manufacturing Company (TSMC).

The company’s stock has dropped more than 20% in 2024, driven by its difficulties in keeping pace with advancements in the production of high-bandwidth memory chips, which are essential for artificial intelligence (AI) applications.

Samsung’s competitors, particularly SK Hynix, have gained the upper hand in this sector, producing memory chips that are paired with Nvidia’s AI accelerators, which are crucial for training AI models.

In response to these challenges, Samsung has undertaken a series of leadership changes and strategic realignments. Earlier in 2024, the company replaced the head of its semiconductor business, appointing Jun Young-hyun to lead the division.

Jun has since stressed the importance of changing Samsung’s workplace culture to avoid falling behind in critical areas such as AI chip manufacturing. His warnings followed years of stagnation in the company’s efforts to catch up with its competitors.

Despite these challenges, Samsung has not announced any significant layoffs in its home market of South Korea, where the company’s largest operations are based.

Instead, it has focused its workforce reductions on international subsidiaries, including Singapore, India, and Latin America.

The cuts in Singapore are part of a broader trend of job reductions across Samsung’s global operations, with similar layoffs expected in other key markets. The exact figures will depend on local labour laws and the company’s financial priorities in each region.

The layoffs in Singapore also reflect Samsung’s efforts to balance its workforce amid a downturn in the global semiconductor market.

The cyclical nature of the memory chip industry has historically led to workforce adjustments at major companies like Samsung, which has periodically reduced its headcount in response to changing market conditions.

Earlier in 2024, the company trimmed about 10% of its workforce in India and parts of Latin America, in a move that mirrors the latest cuts in Singapore.

Samsung’s retrenchment efforts have not been without controversy. The company’s labour relations in South Korea have been strained in recent months, with the largest of its unions staging the first-ever strike in Samsung’s history in May 2024.

Although this unrest has not yet significantly impacted its operations in South-east Asia, it adds to the mounting pressures Samsung faces as it tries to maintain its competitive edge in the global tech industry.

The company’s restructuring is being overseen by executive chairman Jay Y. Lee, who took the reins after being acquitted of stock manipulation charges earlier in 2024.

Lee, the grandson of Samsung’s founder, has been tasked with navigating the company through a difficult period, marked by increasing competition in key markets and a shift towards AI-driven technologies.

For Samsung, the layoffs in Singapore are part of a larger strategy to streamline operations and regain its foothold in the global semiconductor market.

As the company continues to face stiff competition from rivals, these workforce adjustments are expected to play a crucial role in its efforts to stay competitive in a rapidly evolving industry.

Continue Reading
5 Comments
Subscribe
Notify of
5 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments

Labour

RDU questions effectiveness of PAP-NTUC symbiotic relationship in supporting retrenched workers

Red Dot United has expressed serious concerns about recent layoffs at Dyson and Samsung, leaving many Singaporean workers facing sudden retrenchments. RDU highlighted the ineffectiveness of unions under the National Trades Union Congress, citing the Lazada incident, where the union failed to provide concrete support, leaving workers feeling neglected. RDU questions how NTUC’s close relationship with the PAP has benefited workers during such crises.

Published

on

SINGAPORE: Red Dot United (RDU) has voiced serious concerns regarding the recent layoffs at Dyson and Samsung, which have left many workers in Singapore facing sudden retrenchments.

In an statement issued on Wednesday (2 October), RDU highlighted that in July 2023, Dyson’s founder, James Dyson, was awarded the Public Service Star for his significant contributions to the Singapore economy.

“Yet, less than a year later, Dyson’s Singapore staff were shown the door with what seems to be a cavalier attitude towards their well-being.”

RDU criticised the ineffectiveness of unions under the National Trades Union Congress (NTUC) in supporting workers facing retrenchment, echoing earlier controversies such as the Lazada layoffs, where unions appeared reactive rather than proactive in advocating for their members’ interests.

The party pointed out that during the Lazada incident, the union struggled to provide concrete support to workers, leaving many feeling neglected.

RDU: Union Response Lacks Impact, Leaving Vulnerable Workers Without Assurance

In an earlier statement, the United Workers of Electronics and Electrical Industries (UWEEI) expressed disappointment at receiving just one day’s notice from Dyson, deeming it insufficient for meaningful dialogue.

Although the union has escalated the matter to the Ministry of Manpower and expressed willingness to support affected workers, it also clarified that these retrenched staff fall outside the union’s scope of representation under the collective agreement with Dyson.

RDU said this leaves the union’s response looking inadequate and toothless, offering little assurance to workers in such vulnerable positions.

RDU also criticises the Government’s “trampoline” approach, which has been promoted by Mr Tharman Shanmugaratnam, the current President, and NTUC’s Chief Ng Chee Meng.

RDU said while the rhetoric sounds promising, affected workers feel they are landing on bare concrete without a safe bounce back.

“How has NTUC’s symbiotic relationship with the PAP helped the workers in this instance?”

RDU further questioned the adequacy of the Government’s SkillsFuture Jobseeker Support Scheme, arguing that $6,000 over six months is insufficient to ensure genuine job security and support for those affected.

“A temporary financial cushion is no substitute for real job security. Whatever help scheme the Government rolls out should not place additional pressure on vulnerable workers, many of whom need more comprehensive support to regain their footing.”

RDU highlighted that workers in Singapore are facing a “double blow” due to ineffective unions and a government safety net that is insufficient to support those in need.

” This is because the unions, which should be standing strong for workers’ rights, are often perceived as being too closely aligned with the ruling party’s goals rather than focused on the needs of the workers.”

“It is no surprise, then, that many of those affected feel alone and uncertain about their future.”

RDU reiterated its long-standing call for stronger measures to ensure fair treatment of workers during retrenchments.

The party stressed that layoffs have significant personal impacts, affecting individuals, families, and overall societal well-being, rather than being seen solely as economic occurrences.

RDU proposed specific solutions to enhance support for laid-off workers, such as improving unemployment insurance and allowing Central Provident Fund (CPF) members, particularly older workers, to borrow from their accounts during unemployment. This would provide meaningful financial relief and help ease the stress of job transitions.

RDU underscored the urgency for both the Government and unions to demonstrate their commitment to protecting the livelihoods of Singaporeans amidst ongoing layoffs.

Continue Reading

Civil Society

WMP: The Dyson lay-offs is a test of how useful PAP’s relationship with unions is for workers

In response to Dyson’s recent layoffs, Workers Make Possible (WMP) questioned whether The United Workers of Electronics and Electrical Industries (UWEEI), an NTUC affiliate, will fight for workers’ livelihoods or accept defeat. WMP highlighted that many PAP leaders, including SM Teo Chee Hean and MP Patrick Tay, lead UWEEI’s Council of Advisors, raising concerns about its effectiveness.

Published

on

The recent lay-off decision by UK-based tech giant Dyson in Singapore has raised significant questions about the effectiveness of the ruling People’s Action Party (PAP)’s relationship with unions, according to local civil society group Workers Make Possible (WMP).

In an Instagram post, WMP shared two screenshots of news articles, highlighting the irony of British billionaire James Dyson receiving the Public Service Star (Distinguished Friends of Singapore) award in July 2023 for his contributions to the Singaporean economy.

However, fast forward to recently, Dyson’s unexpected round of layoffs left many employees in shock and morale at an all-time low, with only a day’s notice given to The United Workers of Electronics and Electrical Industries (UWEEI), an affiliate of the National Trades Union Congress (NTUC).

 

According to Channel News Asia, the layoffs come just three months after Dyson had assured staff that its Singapore operations, which serve as its global headquarters, would be unaffected by a global restructuring that had cut 1,000 jobs in Britain.

Employees reported that the retrenchment process was conducted discreetly, with affected workers receiving email notifications for private “one-on-one” meetings.

During these meetings, attended by human resources representatives, employees were informed that their roles had been rendered redundant.

A Dyson spokesperson responded to media inquiries by stating that the company was adjusting its team composition to ensure it had the right skills in place for future growth.

“Our ambitions in Singapore remain unchanged, and we expect to continue growing here in the medium term,” the spokesperson said.

Dyson did not, however, disclose the number of employees laid off or provide specifics on how the company plans to support the affected staff.

UWEEI expressed disappointment over the layoffs, revealing that it was informed only a day before the retrenchment, which left little room for meaningful discussions.

The union has since escalated the matter to the Ministry of Manpower (MOM) for further review.

While the union acknowledged that the affected employees fell outside its scope of representation under its agreement with Dyson, it pledged to support the laid-off workers in collaboration with NTUC’s Employment and Employability Institute (e2i).

UWEEI and e2i will assist with job searches, career coaching, and retraining. The union also called on companies to adhere to NTUC’s Fair Retrenchment Framework, emphasizing the need to protect local workers and ensure that adequate support is given during layoffs.

WMP Calls on UWEEI to Act Decisively Amidst Dyson Layoffs, Questioning PAP’s Commitment to Worker Advocacy

Commenting on UWEEI’s response to the recent Dyson layoffs, WMP noted that many PAP members are part of its Council of Advisors, with Senior Minister Teo Chee Hean serving as Chairman and PAP MP Patrick Tay as secretary.

WMP also pointed out that during a parliamentary sitting last month, PAP MPs fervently defended the importance of involvement in trade unions to protect workers.

“Critics should pause their judgement and see what the UWEEI can do in this moment of crisis for the laid-off workers,” WMP remarked.

The group questioned the effectiveness of UWEEI’s actions, suggesting that if PAP MPs are correct in their assertions, then UWEEI should not remain passive.

“It surely cannot be the case that all the UWEEI is able to advertise up-skilling programs to laid-off workers?”

WMP questioned what UWEEI’s next steps will be and whether they will accept defeat or fight for workers’ livelihoods.

 

Continue Reading

Trending