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Samsung reassigns 20% of network division workforce to other units

Samsung Electronics has announced a significant personnel adjustment within its Network Division, a move that will see approximately 700 out of its 4,000 domestic employees reassigned to other departments. The announcement made on June 17 comes in response to the recent saturation of 5G equipment deployment in major markets and the extended timeline required for the transition to 6G technology.

In 2018, Samsung Electronics achieved a milestone by becoming the first company in the world to commercialize 5G technology. This breakthrough led to the dispatch of research and development staff from the Wireless Business Division and the Visual Display Business Division to bolster the Network Division’s efforts. However, the current market conditions have necessitated a strategic shift.

“The company’s Network Division has decided to transfer approximately 700 out of its 4,000 domestic employees to other departments,” stated a representative from the ICT industry. This reassignment includes the return of the research and development staff who were initially dispatched in 2018.

Last year, the Network Division’s sales amounted to 3.78 trillion won, making a significant decrease of 29.7% compared to the previous year. This decline in sales is attributed to the reduced demand for 5G equipment as major markets have reached a saturation point. Additionally, the time required for the development and deployment of 6G technology has further impacted the division’s performance.

Samsung Electronics’ Network Division is responsible for developing and deploying telecommunications infrastructure, including 5G technology. The company’s pioneering role in the commercialization of 5G has positioned it as a major player in the global telecommunications equipment market. However, the cyclical nature of the market, characterized by periods of rapid growth followed by saturation, has influenced the company’s recent performance.

The decision to reassign a significant portion of the Network Division’s staff is part of a broader strategy to optimize resources and address changing market demands. Corporate restructuring practices, such as personnel reallocation, are common in the industry as companies strive to improve overall efficiency and adapt to evolving technological landscapes.

As the telecommunications industry prepares for the next generation of technology, 6G, Samsung Electronics is positioning itself to navigate the challenges and opportunities that lie ahead. The reassignment of staff is expected to enhance the company’s ability to innovate and maintain its competitive edge in the market.

The current status of the personnel adjustment plan indicates that the reassignment process is underway, with employees being integrated into other business units within Samsung Electronics. Future developments will likely focus on the company’s efforts to advance 6G technology and sustain its leadership in the telecommunications sector. Business Korea

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