News summary: On July 29th, Samsung Electronics Suzhou Computer released a note to employees. The simple thing is to lay off employees. Except for the employees in the R&D department, the performance of the labor contracts of the rest will be affected. SESC intends to negotiate with the affected employees to terminate the labor contract. If employees have comments or suggestions, please report them to the ER personnel of the department, and the ER personnel of each department will collectively submit it to the personnel department. The company will report the relevant situation to the headquarters and try to strive for a reasonable compensation plan. The compensation plan will be announced on July 31, 2020.
When Samsung relocated the most profitable industrial chain of the mobile phone industry to Vietnam and India, we seem to have been surprised by the news of Samsung’s factory shutdown and layoffs!
However, under the impact of the world’s worst epidemic in 2020 and the US and Japanese governments inciting companies to withdraw, the news of China’s Samsung layoffs or factory closures cannot be ignored!
On July 29th, Samsung Electronics Suzhou Computer released a related note to employees. The note stated that in recent years, due to fierce market competition, the company’s (SESC) product market share has been shrinking. In order to cope with changes in the situation and the market, Samsung headquarters adjusted its development strategy to transform and upgrade the computer production industry. SESC will focus on research and development to expand and strengthen PC research and development, so that the Samsung computer industry will gain new competitive advantages in future competition.
Due to the significant changes in the aforementioned objective circumstances, the performance of the labor contracts of all employees except for the employees in the R&D department will be affected.
SESC intends to negotiate with the affected employees to terminate the labor contract. If employees have comments or suggestions, please report them to the ER personnel of the department, and the ER personnel of each department will collectively submit it to the personnel department. The company will report the relevant situation to the headquarters and try to strive for a reasonable compensation plan. The compensation plan will be announced on July 31, 2020.
According to public information, Suzhou Samsung Electronics Computer Co., Ltd. was established in Suzhou in September 2002 with a total investment of 33.58 million U.S. dollars and a registered capital of 13.43 million U.S. dollars. It covers an area of 26,000 square meters and was officially put into operation in April 2003. In September, South Korea’s Samsung Electronics completed the project to move all notebook computer production lines to Suzhou, and all production plants in other regions will be closed, or only notebook computer research and development and marketing will be retained. There are currently 2,000 employees, and it is the only notebook production base of Samsung Electronics in the world.
According to sources, even if all the R&D personnel are retained, the layoffs of Samsung Electronics Computer Co., Ltd. may exceed 1,000.
With the major layoffs of Samsung Electronics Computer Co., Ltd., Samsung’s subsequent notebook production may be outsourced, which may be a big piece of good news for other notebook OEM/ODM manufacturers.
In recent years, Samsung’s life in China has not been easy. Take the mobile phone business as an example. At its peak in China, Samsung’s market share was as high as about 20%. Today, even its 1% market share is less than that. It can be said to be very bleak, and this has also affected the development of Samsung’s other domestic businesses. Therefore, we often see news that a certain domestic factory of Samsung has either closed or laid off employees!
Samsung’s move out of China is not a bad thing!
Many users feel sorry for Samsung’s move out of China! Because after Samsung moves out, it means that some people in the country may lose their jobs, and it will also reduce tax sources, so from this point of view it is a disadvantage! However, if we look at it from another angle, this is not all bad!
Samsung has been cultivating in Vietnam in recent years. Now Vietnam has become an important investment place for Samsung. The reason for choosing Vietnam is that, on the one hand, they are in a gateway position in Southeast Asia. On the other hand, Vietnam’s current industrial structure is comparable to that of our country. The years are very similar. To put it bluntly, Samsung has taken a fancy to Vietnam’s intensive labor, which can greatly reduce labor costs for Samsung!
The reason why Samsung moved out of China is mainly because our country’s demographic dividend is disappearing, which means that our country’s industries are undergoing changes. We no longer rely solely on the original traditional intensive industries, but have turned to higher-end industries. , Such as big data, cloud computing, high-end manufacturing, smart factories, etc.!
Except for the employees in the R&D department, the performance of the labor contracts of the other personnel will be affected.
Although their removal will cause us pain, but if we still rely too much on their traditional industries, it will not be conducive to our country’s industrial upgrading, and it will not be able to compete with world powers, and even affect our global call. force!
Before that, we often said that we were made in China, and this term has become a thing of the past. In the future, we will change to Chinese creation. In this process, Samsung Display is not the first and not the last to move away! What do you think about this?