Some analysts estimate that the Note 7 explosion will cause Samsung to lose at least $17 billion, based on Note 7 sales of up to 19 million units. This estimate is not sensational. Last month, Samsung released its third fiscal quarter 2016 report, operating profit fell 30% year-on-year to 5.2 trillion won (about 4.4 billion US dollars), and last quarter, this figure is still big Up 18%.
The business decline caused by Note 7 also affected Samsung China. A few days ago, according to news reports, after Samsung announced the recall of China Note 7 mobile phones, Samsung China staff has been busy processing user claims emails. Since Chinese users' Note 7 mobile phones are purchased from China and purchased overseas, the number will definitely exceed the officially announced 190,000 units.
In the process, Samsung China employees also based on past experience, the company concluded that the company is in the process of layoffs:
"Northwest and southwest, which branch is going to be demolished..."
"The first one in Central China was taken down, and then the layoffs began in December... I also heard from some authoritative people..."
"Some people say that the merger of the branch is a rumor, some people say that it is already approved, who should I believe..."
Some employees even said they heard rumors of 20% of layoffs. However, there is no official notice and documents from Samsung China regarding the layoffs.
At present, Samsung has seven branches in China, covering 32 provinces and employing tens of thousands of employees. In recent years, Samsung’s sales in China have been eroded by domestic mobile phones, and the annual flagship mobile phone has suffered a setback. The layoffs may not be groundless.
On August 24th, the first Note 7 charging explosion occurred in South Korea. Since then, there have been many similar accidents around the world. On September 1st, Samsung announced a global suspension and recall plan. However, China is not in the recall. The reason for Samsung is that the Note 7 battery in the Chinese market is produced by another supplier and has no defects, so it is not included in the recall.
However, there have been many incidents of the Note 7 explosion in China. After being interviewed by the AQSIQ, Samsung finally announced its comprehensive recall plan in China, but it was 40 days later than the previous global recall. This is also known as one of the most failed public relations cases.
澎湃 News interviewed a number of Samsung China’s incumbent and retired employees. They were also in danger of layoffs. They also pointed out some reasons why Samsung imposed double standards on China.
First, Samsung is a huge empire. The bureaucracy and the will of the chief executive are strong. What employees need to do is "try not to let the president notice himself."
An employee who has worked in the risk management department of Samsung China revealed that he will not report it to some small accidents. Even if it is reported, the risk control department in South Korea usually instructs him to follow the principle of “seeing the officeâ€. The other party's request is reduced, do not expose."
Second, even in Samsung China, middle managers are mainly Koreans, and it is difficult for Chinese to get promoted and reused. Although Samsung China is striving to be more localized, Koreans and Koreans are still more likely to get promotion opportunities.
Recently, the media exposed Samsung employees to collectively kneel at the trade fair for the trade fair. This is a 'big gift' in Korea, and it is grateful to the other party, but it is quite controversial in China.
Third, Samsung ignores the rights of Chinese consumers and believes that "Chinese do not need this right."
In addition to 40 days behind the global recall, Samsung is completely different from China and the European and American markets. After a Chinese consumer reported a Note 7 explosion, Samsung quickly issued a statement saying the reason for the explosion was "external heating" and said that all mobile phones in China were safe. However, this statement was finally "faced" by Samsung's recall plan in China.
And until today, Samsung still could not find out the cause of the explosion of the Note 7 explosion.
As a former Samsung employee said, Samsung did not include China in the first batch of recalls. "The main reason is to save money. I feel that foreigners have found that they want to protect their rights. The Chinese do not need this right." However, "now the Internet In the era, who does not know what standards are in China?"
This is what Samsung should seriously consider.
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