Samsung Executives Told to Work 6-Day Workweek As Profits Plunged

By
Nadia Irdina
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As Singapore moves to more flexible working arrangements starting 1 Dec and some schools are implementing a 4-day week to ensure well-being, South Korean tech giant Samsung is going against the grain.

Known for making smartphones, televisions and other daily tech appliances, Samsung Group officials told The Korea Economic Daily that its executives will work either on Saturday or Sunday after the usual Monday to Friday.

A Punishment for Poor Results? 

Executives working at all units under Samsung Group are expected to work six days starting April 2024 as part of their emergency strategy.

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This is especially amidst growing uncertainties following sub-par performances from many of its major operations, including Samsung Electronic Co.

The poor performance – a disappointment from its expectations in 2023, has already resulted in executives from Samsung C&T Corp, Samsung Heavy Industries Co. and Samsung E&A Co. voluntarily taking on the extra work day.

Samsung C&T is a branch that focuses on engineering and consumption, while Samsung Heavy Industries is the world’s largest shipbuilder.

It was found that Samsung Electronics saw a loss of about USD 11 billion and its share prices have gone down drastically.

Source: Screenshot from Google Finance

Unfortunately, more of Samsung’s units, such as the Electro-Mechanics Co. and Samsung Life Insurance Co. will join the rest of Samsung in adopting a six-day workweek in hopes of turning things around.

Poor Economic Conditions

Samsung’s poor performance and the implementation of a six-day workweek came amid a backdrop of unfavourable and unpredictable economic conditions. With Samsung operating beyond the electronics, such as with construction and sustainability, they are prone to the changes happening around the world.

Some factors include the sharp depreciation of the Korean Won, tumbling at about 7 percent against the US Dollar. One dollar can now be exchanged to 1,400 won.

This means that Koreans are facing a pinch with things seemingly becoming more expensive, but foreigners like us, depending on the currency can potentially buy Korean products for cheaper.

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Korea’s high dependence on oil imports also means that rising oil prices are affecting how Samsung operates. Samsung Group have pointed fingers at geopolitical tension in the Middle East, claiming that this has resulted in high borrowing costs and an overall uncertain business climate.

Important Business Restructuring

Samsung Group’s heart-sinking decision to enforce a six-day workweek is not an isolated case. The company, among other conglomerates in South Korea, such as SK Group, have also taken measures to adapt to changing market dynamics.

Petrochemical companies, including LG Chem Ltd. and Lotte Chemical Corp., are also undergoing business restructuring initiatives to weather the downturn caused by oversupply from Chinese rivals. This includes shutting down operations that are draining their money.

We’re all familiar with the portrayal of Korean CEO Oppas in our K-dramas — how they manage to find so much time to pursue the girl. It’s unrealistic on a whole other level, now that we know they’re busy trying to ensure their company stays afloat.

While it seems that economic changes are only affecting the people at the top and those working below the executive level are still under a five-day work schedule, it’s said that wages may remain stagnant or turn for the worse.

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Nadia Irdina