Samsung Mobile To Cut Bonuses For Their Employees

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It seems like Samsung Mobile plans to cut bonuses for its employees for 2016, at least according to the latest report from SamMobile. Now, most of you probably have a guess as to why that is, the Galaxy Note 7 is reportedly the reason why. We did not see a number of important layoffs in the company following the Galaxy Note 7 fiasco, though that could happen in the near future, but it seems like the company had decided to punish their employees through bonuses, well, lack thereof.

Samsung has an OPI reward program in place, which pays employees up to 50% of their annual salaries in bonuses, now, there's a catch, they need to fall within 20% of Samsung's excess profits. As a result of the Galaxy Note 7 fiasco, such bonuses will be cut on January 26th, at least based on the info the source acquired from Korea. If the reports are true, Samsung plans to cut bonuses from 50% to just 17%, though do keep in mind the company did not confirm this info, these are just reports, nothing else, but it sure makes sense. If this happens, that will be the first time in 6 years that the bonus percentage has fallen below 20%. Things are not so grim in all of Samsung's divisions, of course, the company's memory division is doing great, and they did not have to deal with such significant losses, their employees will receive 50% of their salaries bonuses, that's for sure.

As most of you know, the Galaxy Note 7 was supposed to be Samsung's crown jewel this year, but it turned out to be a total nightmare for the company. Soon after the company started shipping Galaxy Note 7 units to consumers, reports started emerging saying that the units are exploding while charging. We've seen a ton of such reports out there, and Samsung was forced to recall the Galaxy Note 7 not once, but twice, after which they decided to cut their losses and stop selling the phone altogether. The Galaxy S8 is expected to arrive in the first half of 2017, and the company is expected to unveil a truly great device in order to make up for the Galaxy Note 7 fiasco.

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