Samsung to freeze salaries in attempt to cut costs amid shrinking profits
On Thursday Samsung Electronics Co. announced it will freeze its employees'
salaries this year as part of an effort to cut costs while profits are shrinking.
South Korean tech giant is one of the more
lucrative places to work but it also has a reputation for strict
management of its employees based on overall business performance, says MarketWatch.
In the last quarter of 2014 Samsung registered its third straight profit decline due to falling smartphone sales and prices.
Last July, hundreds of senior managers at Samsung's mobile division took a 25% cut in their first-half bonuses due to the company's poor profits.
According to regulatory filings, mobile chief J.K. Shin earned 689 million Korean won ($626,000) in the third quarter of last year - a much smaller amount than the 1.7 billion won ($1.5 million) which he pocketed in the previous quarter.
At the same time, the new salary freeze will not impact individual incentives or bonuses.
