Samsung Employees Receive 4.1 Percent Pay Raise For 2023, Less Than Half Of What They Got In 2022 Due To An Abysmal Quarter

wccftech.com:

As Samsung prepared for a massive 96 percent dip in operating profit, it also made reductions to the pay raise that employees would receive this year, which is 4.1 percent, according to the latest report. Unfortunately, the figure is significantly less compared to what they got last year, and even though the company’s mobile division seems to be doing well, other businesses are not.

A 4.1 percent pay raise for 2023 is still a decent sum, especially considering that the operating profit Samsung made was the lowest in 14 years. According to Yonhap, raises for board members were frozen due to poor performances that have adversely affected Samsung’s chip arm. The global economy has also resulted in weakened demand. Apparently, a compromise took place between the two parties, and a settlement was reached.

Just last week, for the January to March period, Samsung estimated that its operating profit would be just 600 billion won, or $454.9 million, down from 14.12 trillion won a year ago, which is a whopping $12.06 billion. This massive setback forced Samsung to cut down on memory production while also estimating a deficit of 4 trillion won, or $3.42 billion. Fortunately, the Galaxy S23 series were in high demand and helped Samsung stave off any additional losses, which will be surprising to many, given that smartphone demand has decreased as well.

Originally, Samsung reportedly planned to increase the board members’ average salary by 17 percent, but as you can see, the poor financials adversely impacted its decision. At the same time, Samsung’s unionized workers, which account for around 4 percent of the total 110,000 workforce, have engaged in wage negotiations with the company’s management since late last year.

The report states