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Dozens of execs fired or demoted this week after Samsung’s profit plummeted 60%

Published Dec 5th, 2014 3:59PM EST
Samsung Layoffs 2014

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Samsung’s third quarter was nothing short of a disaster. Pressure at the high end of the smartphone market from Apple and at the low end from Chinese phone vendors squeezed Samsung’s biggest moneymaker from both ends. As a result, the company’s revenue fell 20% on year and its net profit plummeted a horrifying 60%.

Rumors regarding how Samsung plans to respond to its slide have bounced around for the past few weeks, but it looks like the company has finally made its first major change as dozens of executives depart Samsung’s mobile unit.

DON’T MISS: Review: Samsung’s Galaxy Note Edge dares to be different, but does it innovate?

The Wall Street Journal on Thursday reported that dozens of executives within Samsung’s IT and mobile communications business have been fired or demoted and reassigned. According to the paper’s sources, several vice presidents, senior vice presidents and executive vice presidents were removed from their positions or fired.

The report stated that executives came from the development, marketing and media solution center divisions within Samsung’s mobile business. Samsung has not confirmed the report.

Samsung’s struggles may continue in 2015 due to increased competition from Apple’s iPhone 6 and iPhone 6 Plus, coupled with even more capable smartphones launching from inexpensive Chinese handset companies. Samsung recently launched the Galaxy Note Edge in an effort to differentiate with a curved panel on the side of the phone, and a version of next year’s flagship Galaxy S6 will reportedly feature a similar design.

For the time being, however, it remains unclear if the company’s “Edge panel” is something consumers are responding to.

Zach Epstein
Zach Epstein Executive Editor

Zach Epstein has been the Executive Editor at BGR for more than 10 years. He manages BGR’s editorial team and ensures that best practices are adhered to. He also oversees the Ecommerce team and directs the daily flow of all content. Zach first joined BGR in 2007 as a Staff Writer covering business, technology, and entertainment.

His work has been quoted by countless top news organizations, and he was recently named one of the world's top 10 “power mobile influencers” by Forbes. Prior to BGR, Zach worked as an executive in marketing and business development with two private telcos.