Blue whale TMT reporter Wang Shuangyang In April 18th, we finally signed the contract of departure, the middle staff of Shenzhen Samsung Electronics Communications Co., Ltd. to the blue whale TMT reporter, Shenzhen Samsung Electronic communications company will be revoked, except for 6 Korean high level, all employees will be disbanded at the end of April, the demobilization of about 320 people. In this way, Samsung abandoned the only company in China that produces network equipment. The employee complained that all employees began to be told by department leaders in April 3rd, the company is going to close the door, the employees are disbanded; and, most of the workers are production workers, the original demobilization costs are not rich, plus time haste, during the period of the negotiation compensation program at least two. As of the report, the Samsung Corp and Shenzhen Samsung Electronic communications have not issued a written notice to the disbanded staff. At the same time, the reporter called the relevant public relations personnel in SamSung China to learn that we have not received the relevant information and need to know the Department of human resources and other departments. The legal person of a company or a holding company has certain power of adjudication. And many scientists in the technology industry told blue whale TMT that although Samsung has some advantages in OLED and chips, it has encountered Waterloo in the face of competitors snatching Chinese users. The whole brand of Samsung is not being favored by the market in China, and the demobilization of employees seems to have early signs that the abolition of the Shenzhen plant may indicate the transfer of Samsungs business in the Chinese market. This incident appears to be escape, but in fact, it is lack of strength in Chinas overall layout. Nearly 320 employees were demobilized and the total dismissal amounted to over 20 million yuan. Our employees were asked to leave the job voluntarily, the employee said to the blue whale TMT reporter. We have been making a profit before, the average wage is flat with the local level in Shenzhen, and the per capita salary is 4000 yuan / month -5000 yuan per month. According to the industrial and commercial information, Shenzhen Samsung Electronic communications company is the predecessor of Shenzhen Samsung kjian Mobile Communication Technology Co., Ltd., founded in February 2002, and was established by South Korea Samsung Electronics Corporation, China kjian share, Shenzhen city Zhi Xiong electronics, Shanghai joint investment, respectively, with the proportion of 49%, 21%, 20%, 10%. The Sino foreign joint venture, with a registered capital of $20 million, mainly develops and produces CDMA mobile products, sells self produced products and provides after-sale technical services, as well as the research and development of 3G terminal product technology. However, so far, South Korea Samsung Electronics Co., Ltd. has become the controlling shareholder of Shenzhen Samsung Electronics Co., Ltd., holding 95%; Shanghai Alliance Investment Ltd holds 5%. Data from the sky eye show that as of now, Samsung Electronics communications in Shenzhen has made 8 important changes in capital and business transformation: Since the transformation of the business in 2013, the companys business began to be transformed from mobile phone production to network equipment production. It is the only manufacturer of Samsungs overseas network equipment, which mainly produces base station terminal RRU, which had been produced in South Koreas Samsung network business department at the tail of South Korea. The employee disclosed that the demobilization was mainly due to the transfer of production base to Vietnam, and business production was also transferred to Vietnam. It is worth noting that Samsung has established a company in Vietnam since 2015. Vietnamese companies began to produce the same equipment in 2017; at the beginning of 2018, some of our business orders have been implemented and followed by Vietnamese companies. Most of our employees were production workers, and in April 3rd we suddenly learned that the company was closing the door. The time was too short. The company did not consider the follow-up work and life of the staff, and had never issued a written notice or announcement. the employee told reporters that in April 8th, a preliminary compensation negotiation was carried out in April 11th. It was originally scheduled for April 11th. A final compensation scheme. Blue whale TMT reporter learned that as of April 3rd, Shenzhen Samsung Electronics Communication Co., Ltd. nearly 330 employees, including 6 Korean executives. Previously, all the employees were signed directly with Shenzhen Samsung Electronics Communication. The staff said that the company announced the initial demobilization and compensation program in April 8th, that is: the unified benchmark of leaving other companies is N? 3, the number of inauguration years is 2000 yuan less than 7 years, 4000 yuan for the year, and 8000 yuan for more than 10 years. If you go to a brother company, the compensation standard is N, plus 4000 yuan (2000 yuan for resettlement and 2000 yuan for relocation fee); and employees from Huizhou and Dongguan companies only recharge for half a year. However, no progress has been made at this meeting and consultations will follow. The compensation scheme did not get the consent of all the employees, and employees were once prepared to pull the banners to protest, the employee said. The compensation scheme issued by the company is too hard to consider our interests, and our employees feel passive. The final compensation scheme has changed a little in the voice of employees. The final compensation scheme is shown below. More than three hundred people, according to the final compensation scheme of Samsung, estimated that the total severance payment involved at least exceeded 20 million yuan. On the evening of April 19th, the dialogue between Du Changxi, deputy general manager of Samsung Electronics and communications in Shenzhen and WeChat group of employees of the company, no doubt showed the companys demobilization. According to the above lawyers, according to the provisions of the labor contract law on the termination of the contract, the enterprise should pay a months salary economic compensation in accordance with the working years of the worker in the unit, and pay for one year under one year for less than one year, and half a year for half a year. In addition, 30 days notice should be given in advance or an extra payment for one months wages. The demobilized employees of Samsung Electronics communications in Shenzhen are not in accordance with the law, and are suspected of playing the ball. According to the information provided by the people, the employees are mainly skilled workers, and the time of consultation is short and the compensation scheme is one size fits all. In fact, in the case of compensation, the enterprise needs to take full consideration of the employment period of technical work and the distribution of benefits. In addition, senior people in the technology industry believe that the Chinese market has attracted a lot of foreign giants, including Samsung, with huge and relatively cheap labor, huge consumer markets, rising manufacturing technology capabilities and relatively mature infrastructure. The demobilization of all employees in Shenzhens Samsung Electronic communications may have three main factors: one is that Chinas labor cost is rising, the competitors of apple, HUAWEI, OV, millet, and other competitors are growing, the profits and returns of the manufacturing industry have fallen sharply, while the market share is compressed, while the labor costs of countries such as East Asia and India are in phase. It is lower; the two is that the cost of industrial land and tax resources is rising in Chinas real economic environment, which leads to a low profit margin; the three is the adjustment of Samsungs business, and this is probably due to the transfer of business. Mobile phone business encounters Waterloo, SamSung China or strategic migration in China As far as I know, Samsung has been strictly controlled for the number of employees in the past two years, including Tianjin mobile phone, Suzhou SSL and other companies that have been unable to get in for many years. the middle staff told the blue whale TMT reporter, we have felt that Samsungs business is moving. The information on Samsungs layoffs is not to be caught in the wind. Industry insiders pointed out to reporters that, in recent years, especially in 2017, after the change of change, there have been news that Chinas Samsung Electronics will revoke seven branches, and the internal institutions will carry out major changes. After the adaptation, the seven branches of the seven branches will become 26 offices, and the leaders of the standing, the second long and the vice president will be changed into the offices of the various offices. Blame people, and the layoffs are also in progress. Then, if the change of internal organization is in line, does it also mean that the focus of Samsungs business layout in China will also migrate? The 2017 earnings of Samsung Electronics showed revenue of 239 trillion and 580 billion won, up 19% from a year earlier, net profit of 53 trillion and 700 billion won, up 83% from a year earlier, while consumer household appliances and mobile communications business fell, increasing revenue from the storage and OLED business sector, and the revenue of storage and display screens increased compared with Q4 revenue in 2016, respectively. Plus 54%, 51%, more than half of Samsungs total quarterly revenue. In April 26th, the Samsung Electronics 2018 Q1 reported that semiconductor business accounted for most of the demand for memory chips in the market. Chip business accounted for nearly 75% of the total profit, and the decline in OLED panel demand used by smartphones challenged the growth of Q2 performance. The above industry said that the data has been released signal, Samsungs revenue and operation focus is gradually transforming from consumer products to the supply of raw materials. SamSung China has told blue whale TMT that Samsung will continue to expand investment and continue to take root in China; it is unwise to think that the slump of the mobile phone business will make a big blow to Samsung, because Samsung is now developing a focused focus, storage and OLED industries. It is particularly worth paying attention to. According to media reports, in order to get more orders, Samsung plans to invest 5 billion 400 million dollars in new equipment in the Han and Huacheng factories and strengthen the competitiveness of its own semiconductors, and the panel needs to redeploy more large-scale plants to increase production capacity to meet the needs of the industry. There are also industry people think that the Samsung layout of the Chinese market in South Koreas strategic thinking, not to do simple investment, but to carry on the extension of the upstream and downstream whole industry chain. In the future, Samsungs investment layout may focus more on extending upstream to the top of the industrys most profitable profits. Prior to the Chinese market, Samsung was best known for its mobile phone business, followed by home appliance business. The market share of Samsung Mobile has been falling since the explosion door in 2016. Samsungs share of the Chinese smartphone market has dropped from 20% to 0.8% in the fourth quarter of 2017, according to data released by StrategyAnalytics, a market research firm. According to GFK data, Samsungs total sales volume in China in 2017 was 11 million 70 thousand, with a market share of only 2%. It seems that Samsung is a horizontal and integrated industrial chain structure, with a sound layout for key components of mobile phones, such as chips, memory and screen panels. He believes that Samsung has four aspects to pay attention to at present, one is that the user orientation is becoming more and more blurred, the two is the fatigue of product innovation, the three is that the internal management seems to have a disarray, and the four is the focus of the business of the whole brand of Samsung. The previous industry said that Samsung is at the top of the industry chain in the field of electronic products, with large orders and more profit space for suppliers than domestic brands, which is also an important reason for its investment in the top foreign enterprises in China. The increase in human cost in China may be the direct cause of the demobilization of the staff, and in the business layout, Samsung may have to consider another way. Source: blue whale TMT editor: Bai Xin _NT4464 It seems that Samsung is a horizontal and integrated industrial chain structure, with a sound layout for key components of mobile phones, such as chips, memory and screen panels. He believes that Samsung has four aspects to pay attention to at present, one is that the user orientation is becoming more and more blurred, the two is the fatigue of product innovation, the three is that the internal management seems to have a disarray, and the four is the focus of the business of the whole brand of Samsung. The previous industry said that Samsung is at the top of the industry chain in the field of electronic products, with large orders and more profit space for suppliers than domestic brands, which is also an important reason for its investment in the top foreign enterprises in China. The increase in human cost in China may be the direct cause of the demobilization of the staff, and in the business layout, Samsung may have to consider another way.