Samsung’s New Six-Day Work Week Policy for High-Ranking Executives
Samsung has recently made the decision to require its high-ranking executives to work six days a week. This move comes as the company has shifted to “emergency mode” to address ongoing business challenges it is currently facing. The new policy, revealed in a report by The Korea Economic Daily, impacts executives and top managers across Samsung’s various divisions.
Samsung Enters “Emergency Mode” Due to Financial Difficulties
Samsung’s financial results for 2023 were disappointing, with a recorded revenue of approximately $51 billion in the final quarter of the year. This figure represented a 3.8% decline year-on-year and a 2.2% decrease compared to initial analyst forecasts. The company’s operating profit also saw a significant drop of 34.6% year-on-year to nearly $2 billion, resulting in an overall deficit of around 14.88 trillion Korean won or $10.8 billion for the year.
A high-ranking executive at Samsung explained the rationale behind the new work week policy, stating, “Considering that performance of our major units, including Samsung Electronics Co., fell short of expectations in 2023, we are introducing the six-day work week for executives to inject a sense of crisis and make all-out efforts to overcome it.”
This policy adjustment is believed to be part of the company’s strategy to address the heightened competition in the chip market, with competitors such as SK Hynix posing significant challenges. Despite facing tough rivalry, Samsung managed to surpass Apple in the latest quarterly smartphone shipment figures, capturing a 20.8% global market share.
Executives from key Samsung businesses, including Samsung Electronics, Samsung SDI, and Samsung SD, will now be required to work an additional day each week to meet the new work week mandate. In contrast, employees below the executive level will maintain their regular five-day work routines.
Despite the tough market conditions, Samsung has shown resilience by only laying off 30 employees in March 2023. Many of its competitors have resorted to massive layoffs, but the current challenges faced by Samsung are prompting the company to take proactive measures to navigate the turbulent business landscape ahead.
