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Samsung feeling the pinch, will cut costs


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Guest Robert Nazarian
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Samsung has had tremendous success during the last couple of years, but due to changes in the global smartphone market, Samsung is going to have to “tighten the belt.”

 

Samsung’s operating profit dropped to the lowest point in two years, which is a whopping 25 percent swing. Analysts believe that Samsung will need to starting trimming some of the fat. This could very well likely result in employee cuts. According to industry sources, they could cut 20 percent of its executives.

 

 

Another area could be travel expenses. Recently, Samsung held meetings with 26 global airlines in an effort to spur bids from each airline for overseas travel. Right now they are spending roughly $38 million in airfare and this move could cut that by 20 percent.

 

Will this doom and gloom be an opportunity for HTC, LG, and Motorola/Lenovo or will Samsung right the ship in quick fashion?

 

source: Korea Herald

 

 

 

 

Come comment on this article: Samsung feeling the pinch, will cut costs

 

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