HomeSamsung Shifts to Emergency ModeBlogSamsung Shifts to Emergency Mode

Samsung Shifts to Emergency Mode

Samsung Group has initiated a six-day work week for its executives, effective immediately. The shift to emergency mode aims to address a myriad of challenges, including a weakening Korean won, rising oil prices, and increased borrowing costs, following lower-than-expected financial results in 2023.

Executives from Samsung Electronics Co., including heads of production and sales units, will work either Saturday or Sunday in addition to their regular five-day work week. This extra day is dedicated to reviewing business strategies and adapting to the rapidly changing market conditions. The company’s move follows a disappointing year, with its core semiconductor division recording an operating loss of 15 trillion won ($11 billion), and geopolitical uncertainties stemming from the ongoing Russia-Ukraine conflict and Middle East tensions.

Top management at Samsung Display Co., Samsung Electro-Mechanics Co., and Samsung SDS Co. are also expected to adopt the six-day work week, while Samsung Life Insurance Co. and other financial firms within the Samsung Group may join soon. However, the extended work week is not mandatory for employees below management level, who will continue with their standard five-day schedule.

This emergency shift aligns with efforts by other major South Korean conglomerates to adapt to changing market dynamics. Earlier this year, SK Group reintroduced Saturday meetings for its executives, and petrochemical companies are tightening operations to contend with an industry slump caused by Chinese oversupply.

The new work schedule could be seen as a bold step to stabilize Samsung’s business and position it for future growth. The company is also facing stiff competition in the high-bandwidth memory (HBM) sector, as it seeks to overtake domestic rival SK Hynix Inc. and compete with Intel Corp.’s foundry ambitions.

For more insights into Samsung’s emergency mode and industry trends, check out the original story here.