Recently, the economic recession of the smartphone market has also hit many companies. One of these companies was Samsung, which is among the largest smartphone vendors in the world. Despite being at the top of the list, Samsung is going downsizing for smartphone production.
Samsung makes reductions at the factory where it manufactures half of all its phones
Samsung said it expects smartphone sales to hold steady or achieve single-digit growth in the second half. However, the situation is not progressing as the company wanted. According to a report by Reuters, the company is reducing its smartphone production in Vietnam. The smartphone factory in Thai Nguyen produces 100 million smartphones each year.
This is allegedly due to an increase in inventory and a global decline in consumer spending. It also means that Samsung doesn’t want to produce more units than they can sell.
In addition, the reduction affects not only Samsung but also Vietnam. Because the manufacturing sites in the country are where the company produces half of its smartphones. This means that the hours of the people working in these factories are cut and may even be fired.
According to a worker at the factory, the new working hour is only three days a week. Some lines operate four days a week. At the same time, things seem to be going better in 2021, when the pandemic period is common. Many workers claimed that they have never seen smartphone production so low.
In addition to Samsung, there have been layoffs at companies such as Clubhouse, Coinbase, PayPal, Netflix, Tesla and TikTok. On the Google and Facebook side, it is highly likely that there will be layoffs due to the decline of the global economy.
So, what do you think about the decrease in Samsung smartphone production? Don’t forget to share your views with us in the comments section!
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