Samsung is in trouble: sales are falling, warehouses are full, and smartphone production is being cut at a large factory

Reuters writes that due to the global decline in demand for gadgets, Samsung is forced to cut


What does it mean?

Journalists talked to employees of the plantSamsung in Vietnam, where the world's largest smartphone maker makes half of its phones, according to the Vietnamese government. And this plant has already experienced a drop in sales. So, according to employees, they switched to a three- or four-day work week, there is no overtime work either. And this despite the fact that even last year, at the height of the COVID-19 pandemic, production activity was much higher.

Several employees who have workedat the plant for about 5 years, said they had never seen deeper cuts in production. “Of course, every year there is a low season, often between June and July, but the low season means no OT (overtime) and not such shortening of the working day,” notes Pham Thi Thuong, 28. factory worker. “Last month my salary was halved because I only worked four days and did nothing for the rest of the week,” added another worker, Nguyen Thi Tuoi.

Some workers are thinking about layoffsplaces, but this has not yet been announced. “I don’t think there will be job cuts, just a reduction in working hours in line with the current global situation,” said one worker, who declined to be named.

In addition, according to employees, warehousesstocked with electronics. America's largest warehouse market is crowded and major US retailers such as Best Buy (BBY.N) and Target Corp (TGT.N) are warning of a slowdown in sales.

At the same time, Samsung itself is full of optimism:The company said in its earnings call last week that supply disruptions had largely been eliminated and that demand would either remain flat or even rise in single digits.

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