NewsSamsung extends managerial workweek to six days amid financial strain

Samsung extends managerial workweek to six days amid financial strain

Samsung introduces a six-day work week for management staff.

Images source: © Licensor | Samsung

5:34 PM EDT, April 23, 2024

Samsung has increased its managerial staff's workweek to six days, diverging from current market trends that lean towards workweek reduction. This decision comes from the company's disappointing financial performance, prompting a strategic shift contrasting with the broader shift towards shorter workweeks in other large firms.

Reports from South Korea indicate a gradual extension of working hours among Samsung's management team. Specifically, managers within Samsung C&T (Construction & Trading) and the heavy industry sector have transitioned to a six-day workweek. Similarly, managers at Samsung E&A, an engineering subsidiary specializing in cutting-edge technology, alongside Samsung Life Insurance, are experiencing extended work schedules.

Intriguingly, some company departments have seen managers voluntarily adopting a six-day workweek since the start of the year, showcasing a proactive approach to confronting the company's challenges.

The root of this significant shift lies in the conglomerate's lackluster financial performance. In 2023, Samsung Electronics witnessed a staggering 95% decline in profits compared to the previous year, marking a 15-year low. The semiconductor division has also faced formidable challenges.

Compounding these difficulties are broader economic pressures, including rising oil prices, which augment operational costs, and the depreciating South Korean won, which narrows profit margins.

Samsung's choice contrasts with the evolving labor market norms, where many corporations are exploring or implementing four-day workweeks. However, it appears Samsung may not be alone in this approach, as other South Korean conglomerates like SK Group, Hyundai, and Doosan are reportedly considering or observing the impacts of a six-day workweek, hinting at a possible trend within the region.