Samsung cuts employee salary hike, halts board members’ raises

Samsung has lowered the average salary increase for its employees to 4.1%, compared to 9% last year. Additionally, the company has decided to halt salary increases for its board members


Amid the poor performance caused by a global slowdown and an increasing chip glut, Samsung is taking different steps to cut costs. The tech giant has decided to halt the salary raise of its board member along with a lowered average salary hike to its employees, reported IANS.

Last year, Samsung had offered an average pay increase of 9 per cent to its employees, but this year, they will receive an average increase of 4.1 per cent. Moreover, as a part of its cost-cutting measures, the company has also suspended salary increases for its board members for this year. 

In the past, Samsung’s announcement of a 9 per cent pay hike for its employees was the largest in ten years. However, the employees demanded a 16 per cent pay increase after the company’s profits rose. The company negotiated with employee representatives to settle on wages and labour policies, such as extending shortened working hours for pregnant employees.

Recently, Samsung has shown interest in AI development and is planning to use it to enhance productivity. Reports suggest that the company is working on its own AI service, similar to ChatGPT, to assist employees with coding tasks. The AI platform is expected to be used only internally to ensure data security.

This comes after concerns were raised about sensitive information being entered into ChatGPT by Samsung employees. Samsung had initially banned ChatGPT on its servers but later allowed employees to access it. However, the company is now considering re-imposing the ban due to the information leaks.

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