Samsung to freeze salaries in South Korea
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Samsung Electronics will freeze wages in 2015 for employees in South Korea for the first time in six years, after the world’s biggest smartphone maker saw profits fall in the face of rising competition.
The cost-cutting move is the latest by Samsung Electronics, which in January reported its first annual profit decline since 2011, as it lost market share to Apple Inc’s new iPhones and cheaper Chinese rivals like Xiaomi Inc.
The wage freeze also comes as the electronics giant is widely expected to unveil its next Galaxy S smartphone at a March 1 event, hoping to revive sales growth momentum.
Questions & Answers
Q.What is the primary reason for Samsung freezing wages in South Korea?
What is the primary reason for Samsung freezing wages in South Korea?
Samsung Electronics is freezing wages because its profits fell significantly. The company saw its first annual profit decline since 2011 due to rising competition.
Q.Which competitors are mentioned as contributing to Samsung's profit decline?
Which competitors are mentioned as contributing to Samsung's profit decline?
The article mentions Apple Inc.'s new iPhones and cheaper Chinese rivals, specifically Xiaomi Inc., as contributing to Samsung losing market share.
Q.How long has it been since Samsung last froze wages for its South Korean employees?
How long has it been since Samsung last froze wages for its South Korean employees?
This is the first time in six years that Samsung will freeze wages for employees in South Korea. The current wage freeze is for 2015.
Q.What is Samsung planning to do in March to try and boost sales?
What is Samsung planning to do in March to try and boost sales?
Samsung is widely expected to unveil its next Galaxy S smartphone at a March 1 event. The company hopes this will help to revive sales growth momentum.
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