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Report: Samsung to focus on profits rather than growth
June 11, 2025
It’s no secret thatSamsunghas been havinga tough timemaintaining its previously strong profit levels over the past few quarters and it has caused many to speculate about how the electronics giant will pull itself out of this problem. According to an anonymous, but apparently high ranking source, Samsung is preparing to adjust its approach to focus on profitability rather than trying to grow its existing business any further.
This news suggests that Samsung may be looking to further cut costs to boost profits, if it no longer believes that it can expand its existing business much further. Some sources suggest that Samsung may examine its current staffing levels, but there’s no official indication as to exactly how or where the company will make such savings. At the beginning of the year, Samsung planned to reduce its marketing budget, but many expect that it will have to go further to boost its profit levels.
Samsung is apparently struggling with high costs as a result of its expansion over the past few years, such as a large increase in its wage bill. The company now employs some 320,000 staff, almost double its 180,000 headcount back in 2008. However, Samsung recentlyrebuffed reports that it was planning to reduce staff levelsin Korea. Instead, the company is looking to relocate some managers.
If the company is planning a business shift, Samsung will likely want to ensure than any changes to the company’s structure don’t affect its existing successful product lines. This rumor certainly doesn’t mean that Samsung won’t be continuing to invest in R&D and new product lines. Instead, the company may end up slowing down or abandoning some of its future expansions plans, to consolidate its focus on existing divisions and improving their profitability.
While smartphone and consumer electronics sales may be slowing, Samsung’s semiconductor business has been generating much needed additional revenue for the company. This could be key to Samsung’s future profitability.
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