Samsung’s reputation has been dragged through the gutter by the Galaxy Note 7 and caused a great deal of embarrassment. Before this unfortunate event, Samsung was a respected company and known for releasing reliable products. Of course, mistakes can happen in the manufacturing chain although the responsibility always lies with the company scrutinising the build process. Usually, a quick recall and success of replacement units are enough to dispel the negative media coverage. Sadly, this wasn’t the case and users complained about replacements suffering from a similar fate.
In lieu of this terrible situation, Samsung has apparently decided to cull 200 executives. This would bring the number of executives within the company down from 1000 to 800. An insider speaking to the Korea Herald said:
“Samsung, which has launched the performance assessment of its executives from this month, plans to cut up to 20 percent of the entire executive strength.”
Whether this is a reaction based on the executives’ performance during the Galaxy Note 7 fiasco or simply down to a weaker financial position remains to be seen. Overall, I think this is a sensible decision and shows Samsung is making difficult decisions to adapt to this unexpected turn of events. Hopefully, their future products will have a smooth launch and begin to repair their tarnished reputation.
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