Big Board Alerts

December 5, 2023
Samsung ramps up employee discipline when the chips are down

After Samsung Electronics’ Device Solutions (DS) Division suffered its worst loss to date, the South Korean device giant is intent on addressing employee discipline issues, reports The Korea Times.

The DS Division is in charge of semiconductor production and against a backdrop of a chip industry downturn, recorded a $3.4 billion loss in Q1 2023, equivalent to a year-on-year operating profit reduction of 96%.

And according to leaked internal communications, on November 30th, DS started encouraging its employees to report negligent colleagues to its personal affairs team.

A surveillance state at Samsung?

This latest missive follows a group email in July 2023, which allegedly cautioned employees against committing sexual harassment, neglecting their duties, and abusing privileges.

Reported employee misdemeanors included exaggerating working hours and gaming whilst on duty. While Samsung takes the official line that demands from younger employees about a perceived lack of discipline among seniors catalyzed the new regime, other workers fear it marks a step backwards to a more paranoid and less productive era.

Indeed, The Korea Times reports that one Samsing employee took to Blind (the firm’s internal chat app) to characterize new measures as a return of Oga Jaktong, the Josen Dynasty system which encouraged neighbors to monitor and inform each other between 1392 and the dynasty’s demise in 1910.

Stricter performance assessments are also reportedly in place, alongside the threat of wage freezes and reductions for poor performers, and the conglomerate has just finished an executive reshuffle and organizational restructuring as part of its drive to curb indiscipline.

With the DS Division’s accumulated operating loss totaling $9.1 billion for the first three quarters of 2023, executives worldwide plan to meet imminently to discuss further plans to combat the economic slowdown.

Despite these struggles, Samsung retains its position as an electronics giant, remaining the world’s second-largest mobile phone manufacturer, after Apple.

Free image: Pexels

The post Samsung ramps up employee discipline when the chips are down appeared first on ReadWrite.


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