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Rumor: Samsung to lay off 20% of its Chinese Employees after Note 7 fiasco



After hitting hard on its customers with Galaxy Note 7 smartphone explosions, now the South Korean giant Samsung is all set to unleash the heat on its employees. According to Chinese Media, there is unrest spreading in the company China staff. Because the company may cut off the staff by 20% in China. There is no confirmation about it right now, but employees started talking about it. Even there are rumors of branch mergers among employees. Samsung has several branch offices in China with as many as tens of thousands of employees working in 32 provinces of the country.

Merging branches will also hurt employees as they will be required to relocate or in worst case scenario to lose their job as well. The staff even started calculating the layoff compensation as well if it happened and started finding a new job. Although, there is no announcement about this from the company, but talks already begun about it. The Chinese website which broke the story also quoted some lines of staff as well in its report.

Staff also told media that recently they were flooded with overwhelming work after Galaxy Note 7 explosions and recall. There were so many requests every single day regarding this. The report also cited that company also planning to leave its operations in mainland China, which is another concern.

Recently, a good news also happened for the company. An opinion poll in the United States showed that Galaxy Note 7 explosion and recall did not damage the Samsung brand. And people in the US still willing to buy a smartphone from the company. Even, the poll showed that users still are loyal to the company as Apple iPhone customers. So the survey revealed that Galaxy Note 7 explosion did not affect the consumer’s minds in the US.

Due to Note 7 fiasco, many of airlines abandoned carrying the smartphone in their airlines. Even some of them went one stage ahead and stopped travelers using a Samsung smartphone at all in airlines. Note 7 incident cost around $17 billion to the company in revenue. Some report also said that the operating profits were dropped by 33% from second quarter to third quarter in the year 2016 for Samsung. Many experts called Note 7 recall one of the worst incidents in the history of smartphones. The company recalled at least 2.5 million Note 7 worldwide.

Recently, we also told you about an incident in which Samsung denied out of warranty repair of Galaxy S7 Edge smartphone due to business conditions. The same user tweeted the incident claiming he purchased the smartphone a few weeks back and its screen cracked because he dropped it. The smartphone screen shattered, and when he contacted Samsung support, the support person openly denied. Even the user was willing to pay for it. So it is evident with many incidents including staff cut, things are not going well in the company. We will confirm you soon as soon as the confirmed information come, Stay tuned.


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