Samsung Group is introducing a six-day work week for executives as the company shifts into emergency mode to address a series of economic and industry challenges. The move comes amid a combination of factors, including the sharp depreciation of the Korean won, rising oil prices, and high borrowing costs, all of which have created business uncertainty for the technology giant.
Executives from Samsung Electronics Co., including heads of production and sales units, will now be working either Saturday or Sunday, in addition to their regular five-day work week.According to officials from Samsung Group, the extended work schedule is designed to allow executives to reassess their business strategies and make adjustments to navigate the rapidly changing environment. The company is contending with rising geopolitical risks from the protracted war between Russia and Ukraine, as well as escalating tensions in the Middle East.
“Given the underperformance of our major divisions, including Samsung Electronics, in 2023, we are introducing a six-day work week for executives to evoke a sense of urgency and to ensure we take all necessary steps to overcome the current crisis,” a Samsung Group executive said.
Samsung Display Co., Samsung Electro-Mechanics Co., and Samsung SDS Co. are among the other units to follow suit, adopting the new six-day workweek.Additionally, Samsung Life Insurance Co. and other financial companies under the Samsung Group are expected to implement similar changes soon.
While these adjustments affect top-level executives, non-management employees across the group will continue to work a regular five-day workweek, as has been the company’s policy since 2003.
The change comes after Samsung Electronics recorded a significant operating loss of 15 trillion won ($11 billion) in its core semiconductor business in 2023.The company’s Device Solutions division, which manages the semiconductor business, is responsible for approximately 80% of Samsung’s revenue. Despite some positive signs earlier this month, including a preliminary operating profit rise of more than tenfold in the first quarter, ongoing challenges remain.
As Samsung’s executives gear up for the extended workweek, they are focusing on ensuring the company’s resilience in a volatile business environment. This shift also reflects broader trends in South Korea’s corporate landscape, with other companies like SK Group introducing similar measures to navigate the turbulent economic landscape.
For more information on Samsung’s business strategy and corporate changes, visit The Korea Economic Daily https://www.kedglobal.com/corporate-strategy/newsView/ked202404180009
