Samsung feeling the pinch, will cut costs

August 12, 2014

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Samsung_Logo_01_TA_CES_2014

Samsung has had tremendous success during the last couple of years, but due to changes in the global smartphone market, Samsung is going to have to “tighten the belt.”

Samsung's operating profit dropped to the lowest point in two years, which is a whopping 25 percent swing. Analysts believe that Samsung will need to starting trimming some of the fat. This could very well likely result in employee cuts. According to industry sources, they could cut 20 percent of its executives.

Another area could be travel expenses. Recently, Samsung held meetings with 26 global airlines in an effort to spur bids from each airline for overseas travel. Right now they are spending roughly $38 million in airfare and this move could cut that by 20 percent.

Will this doom and gloom be an opportunity for HTC, LG, and Motorola/Lenovo or will Samsung right the ship in quick fashion?

source: Korea Herald

Robert Nazarian Author

Robert lives in upstate New York where he was born and raised. Technology was always his passion. His first computer was a Radio Shack TRS80 Color that used a cassette tape to save programs, and his first laptop was a Toshiba T1200FB that sported a CGA greyscale screen and two 720kb floppy drives (no hardrive). From the early 90’s through late 2011, he only owned Motorola phones starting with the MircroTAC all the way through to the Droid X. He broke that streak when he bought the Galaxy Nexus. Now he's sporting a Galaxy Note 4, and absolutely loves it. He has a wonderful wife and a 6 year old son. In his free time he enjoys sports, movies, TV, working out, and trying to keep up with the rapid fast world of technology.