Samsung Electronics Co. will this year freeze the salaries of all its workers in South Korea as the Galaxy smartphone maker battles slowing sales and plunging earnings.
The freeze is Samsung’s first in six years and is designed to strengthen competitiveness given business conditions are “not optimistic,” the Suwon, South Korea-based company said in a statement Thursday. Performance incentives and bonuses aren’t included in the freeze, the company said.
Earnings have slumped for three straight quarters as the South Korean company lost its outright lead in the global market and consumers switched to Apple Inc.’s new iPhones and cheaper Chinese handsets running on Google Inc.’s Android operating system. Apple rose into a tie with Samsung as the world’s biggest smartphone marker last quarter, with both companies shipping 74.5 million units, Strategy Analytics said Jan. 29.
Samsung has 99,556 employees in Korea as of Sept. 30, according to a regulatory filing.