Reports on November 4 pointed out that Samsung executives announced an unprecedented four-stage "voluntary retirement" plan, mainly for the long-term loss of wafer foundry business, especially 8-inch foundry manufacturing and technology teams, planning to lay off more than 30% of the workforce.

According to the news, voluntary retirees are expected to receive compensation of up to 400 million won (about 2.064 million yuan).

A senior executive of Samsung Electronics said on November 2 that the first phase of voluntary retirement will be for CL3 employees who have worked for more than 15 years but have not been promoted in the past five years. The second phase is open to employees who have worked for 10 years or more. If the first two stages fail to meet the target. The third phase will be open to all employees; The last phase will ensure that the company can maintain basic operations.

All employees who voluntarily retire will receive a total of about 400 million won (about 2.064 million yuan) in compensation, including severance pay based on CL3 level and four months of salary, totaling 380 million won. Samsung's decision directly reflects the poor performance of its semiconductor business in its third quarter earnings report, especially the operating profit of the device solutions division fell by more than 40% compared to the previous quarter.

Samsung recently reported third-quarter sales of Won79.1 trillion, slightly above expectations of Won79 trillion. Operating profit came in at 9.18 trillion won, beating expectations of 9.1 trillion won, but well below the London Stock Exchange's forecast of 11.456 trillion won. Jun Young-hyun, vice chairman of Samsung Electronics and the new head of its device solutions (DS) division, issued a rare apology after the earnings release.

In addition, Samsung's failure in the 3-nanometer GAA (wraparound gate) process technology caused customers to switch to competitors, exacerbating the loss of the non-memory semiconductor business unit.

According to earlier reports, Samsung's semiconductor division has suspended the production of some wafer foundry in order to cut costs, and more than 30% of the capacity of Pyeongtaek Line 2 and Line 3 has been shut down, and plans to expand this proportion to 50% by the end of the year, covering 4nm, 5nm and 7nm foundry lines.

As the world's largest supplier of memory chips, Samsung once held more than 45% of the global memory market share.

However, in recent years, due to slow progress in the field of advanced process chips and AI chips, market confidence in Samsung has gradually waned.

In mid-September, Morgan Stanley issued a report titled "Winter is Coming," cutting its price target for Samsung Electronics by 27.6 percent, from 105,000 won to 76,000 won. Behind this adjustment is the fact that Samsung is lagging behind rival SK Hynix in the high-bandwidth memory (HBM) segment.

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