Samsung’s declining profits has resulted into freezing pay for its employees for 2015. The freezing of salary will be in effect for 2015 but the salaries won’t affect performance driven incentives that depends on profits.
This is the first time since 2009 Samsung has frozen the salaries of its employees.
According to Yonhap News’ source, the salary freeze is due to the slowing Chinese economy and weak Japanese yen.
Samsung has been taking few steps to swing back into record profitability. Most recently, Samsung reorganised its management structure, relocating employees into other departments and even restricting executives to travel in economy if the flight duration is under 10 hours.
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