Samsung projects that its third-quarter revenue in 2022 will decline by 69%, reaching its lowest level in eight years.
The world’s largest manufacturer of memory chips, cellphones, and TVs predicted that its operating profit for the period would drop to roughly 4.3 trillion won ($3.4 billion; £2.8 billion).
The price of memory chips and the demand for electronic devices are being affected by the global economic recession.
As customers tighten their purse strings, technology firms all around the world have recently been hammered.
It fell short of investors’ expectations of about 5.9 trillion won and was Samsung’s lowest quarterly profit since 2014.
The South Korean manufacturer reported a greater-than-anticipated decline in demand for computer chips as consumers reduced their stockpiles of the vital parts for digital devices.
According to Samsung’s statement, “For the memory business, the fall in fourth-quarter demand was larger than predicted as customers changed inventory in their drive to further tighten finances.”
Samsung is anticipated to publish its entire financial statement on January 31.
The implications of the global economic slump on its operations have just recently been discussed by a big technical firm.
After the pandemic’s surge in demand, when customers at home spent a lot of money online, sales have also slowed.
As a result of slow sales and growing concerns about a recession, the global IT sector is losing tens of thousands of jobs.
This week, Amazon announced the most job layoffs in the history of the company—more than 18,000—as part of its cost-cutting initiatives.
In November, Meta announced that it would reduce its workforce by 13%.
The social media company’s first significant round of layoffs will result in 11,000 jobs being lost from an overall workforce of 87,000.
The modifications, according to Meta’s CEO Mark Zuckerberg, were “the most difficult alterations we’ve ever done.”
When billionaire Elon Musk took control of Twitter in October, it significantly reduced its workforce—cutting nearly half of it—before making the announcement.