After a strong first half of 2022, Samsung anticipates a 69% drop in earnings for the last three months of 2022. It was the lowest level in 8 years. The world’s biggest maker of memory chips, telephones, and TVs anticipates its operating profit to drop to $3.4bn (£2.8bn). Memory chip costs and electronic device demand are falling owing to the global recession.
Companies all around the world that deal in technology have taken a blow in recent months. Consequently customers have become more frugal. Investors had hoped for a quarterly profit of roughly 5.9 trillion won from Samsung. Unfortunately this was the company’s lowest quarterly profit since 2014.
A cost-cutting measure will result in the loss of 18,000 positions at Amazon.
Samsung predicts a 32% drop in profitability due to the recession in the semiconductor market.
The South Korean firm reported a steeper-than-anticipated drop in demand for computer chips. Because consumers reduced their inventories of these essential components for modern electronic gadgets.
“For the memory business, the fall in fourth-quarter demand was larger than predicted as customers modified inventory in their drive to further tighten budgets,” Samsung said.
It went on to say that “poor demand owing to extended economic difficulties” had contributed to a decline in smartphone sales and income.
On January 31st, Samsung will release its annual report in its entirety.
A major technology corporation has spoken out about the effects of the global economic slowdown, joining a growing list of competitors.
After surging during the epidemic when shoppers from around the world made large internet purchases, sales have now decreased.
The global tech industry is cutting tens of thousands of jobs due to falling demand and economic anxiety. Amazon will eliminate more than 18,000 jobs as part of its cost-cutting measures, the most ever.
Meta announced 13% layoffs in the middle of November. Facebook’s first mass layoffs will affect 11,000 of its 87,000 employees.
It was “the most painful adjustments we’ve made in Meta’s history,” Mark Zuckerberg, Meta’s CEO, said of the layoffs.
Twitter let off roughly half of its workers after Elon Musk took control in October.