You are currently viewing SemiWiki as a guest which gives you limited access to the site. To view blog comments and experience other SemiWiki features you must be a registered member. Registration is fast, simple, and absolutely free so please, join our community today!
Today, there is a report that Samsung will cut 10% of its work force at its headquarters, which roughly counts to about 10 thousand people. Since Galaxy Smartphone sale didn't pickup as expected, Samsung's market value has declined by $40 billion, now that's significant for this giant. Expect more job cuts, but how long that'll help?
Many of the areas they cut are easily automated in HR, Public Relations and Finance departments. A significant portion on these areas can be automated, doing more work with far less people. With the new world that semis, mems and advanced software have created, we have entered a Brave New World that society, government, education and our very social structure are not prepared for. There are ways to adapt, but don't depend on government for in most cases they will go from serving the people to preying upon them to preserve their slow moving mind set and work structure that adapts at a snails pace. Depend on yourself.
Arthur, I understand there are many areas, not only in clerical jobs, which can be automated and run with minimal, but intelligent human resource. However that has not been the case here.
Two sides of the coin - If it would have been done pro-actively as a strategy, putting things in place and deploying people elsewhere, it would have been good for the company as well as people. Now that it has been done as reactive action dues to financial loss, those jobs are not automated yet, it's loss to people anyway, the positive effect on the finance is yet to be seen in the longer run.
Pawan, even in high skilled and thought jobs automation can greatly leverage human capital and technology is rapidly increasing the ability to leverage human resources at all levels. Constant innovation is the key and as new technologies mature automation will increasingly leverage human resources during their life cycle. EDA software is but one example of this cycle.
Samsung is rebutting this story — (LEAD) Samsung rules out workforce reduction.
And in fact this type of mass layoff is definitely not their style, nor would it be in their best interest. Samsung Electronics and the rest of the Samsung Group enjoy pride of place as the most desirable place to work in South Korea and some other locales as well, such as Vietnam. Trading that advantage, as well as incurring a major loss of morale throughout the entire organization, would be something Samsung would undertake only if they had no other choice.
The Lee family is only lightly interested in currying the favor of the gods of Wall Street with this sort of ritual slaughter; they are more focused on the long view.
This is good. Salary freeze is fine, they announced early in this year. Also, realigning the work force to something else than straightaway cutting jobs is good.
