Sources saying Samsung profit down to 70% in 2022

Key Takeaways:

• Samsung’s profits are expected to drop by 69% in the last three months of 2022, reaching their lowest level in eight years.
• Samsung is anticipated to publish its entire financial statement on January 31.
• This week, Amazon announced the most job cuts in the company’s history—more than 18,000—as part of its cost-cutting initiatives.

The final three months of 2022 are projected to see Samsung’s profits decline by 69% to their lowest level in eight years.

The world’s largest manufacturer of memory chips, smartphones, and TVs anticipated that its operating profit would drop to about 4.3tn won ($3.4bn; £2.8bn) for the period.

It occurs as the slowdown in the world economy affects the cost of memory chips and the demand for electronic devices.

As consumers tighten their belts, global technology giants have recently taken a hit.

It was the lowest quarterly profit since 2014 for Samsung and fell short of 5.9 trillion won in investor expectations.

The South Korean business claimed that as customers reduced their stocks of the essential parts for digital devices, there was a greater-than-anticipated decline in demand for computer chips.

As customers adjusted inventories to further tighten their budgets, the decline in demand for memory products in the fourth quarter was greater than anticipated, according to Samsung.

It continued, “Smartphone revenue and sales decreased due to weak demand brought on by persistent macro issues.

On January 31, Samsung is expected to release its complete financial statement.

It is the most recent significant technology company to discuss the effects of the global economic downturn on its operations.

Sales have also slowed since the pandemic’s spike in demand when consumers at home spent a lot of money online.

Many jobs are being lost throughout the global technology sector due to sluggish sales and mounting worries about a recession.

The biggest number of job cuts in the company’s history, more than 18,000, were announced by Amazon this week as part of its cost-cutting efforts.

Meta announced in November that it would reduce its workforce by 13%.

There will be 11,000 job losses from an overall headcount of 87,000 due to the social media company’s first mass layoffs.

According to Mark Zuckerberg, chief executive of Meta, the cuts were “the most challenging changes we’ve ever made.”

The announcement came after Twitter made significant staff reductions, cutting about half of its workforce after billionaire Elon Musk took over the company in October.