Key Takeaways:
Four-day workweeks are the latest trend in the corporate world, with an increasing number of companies testing the model with the expectation of boosting the productivity of their employees.
However, Samsung is going in the opposite direction by implementing a six-day workweek for its top executives.
Samsung Implements 6-Day Workweek For Company Executives As Crisis Looms
The move came after the South Korean electronics giant posted its worst earnings in more than a decade, which saw its core businesses, including Samsung Electronics and Samsung Semiconductor, falling way below expectations.
In an interview with the regional news outlet, The Korea Economic Daily, a Samsung Group executive said the company extended the workdays for its top brass in order to “inject a sense of crisis” among its workforce and make an “all-out effort” to overcome the situation.
Lower performance coupled with other economic uncertainties like high-interest rates on the US dollar and oil prices has forced Samsung to enter an “emergency mode”, reported the Korean news outlet. The new rule will impact executives across all its divisions, including those in sales and manufacturing departments.
Samsung’s Net Profit Dropped 72% in 2023, Losing Smartphone Market Share To Rivals Apple
2023 was Samsung’s worst financial year in over a decade, with operating profit plunging 85% last year to $4.7 billion – its lowest since 2009, and net profit dropping a staggering 72% to $11.24 billion – the lowest since 2011.
Samsung’s semiconductor division, which is the third-largest in the world and accounts for 80% of its entire business, recorded a loss of nearly $11 billion last year. Meanwhile, the leading Android smartphone maker also lost its top spot on the global smartphone market to rival Apple in Q4 2023.
According to the directive, executives can choose whether their sixth working day falls on a Saturday or Sunday. Even though employees below the executive level are not mandated to follow the schedule, many are expected to follow their bosses.
It has also been reported that some Samsung division executives have been voluntarily coming to the office six days a week since January.
2024 has started off strong for the South Korean conglomerate as it managed to retake its long-held position as king of the smartphone market.
While Apple shipped 50.1 million units of the iPhone in Q1 2024, Samsung delivered 60.1 million units of its widely popular Galaxy smartphones to customers. However, this figure is still 0.7% less than the numbers from Q1 2023.
Nevertheless, the company now commands 20.8% of the global smartphone sales, followed by Apple, which has a 17.3% market share.
When reached out for a comment on the updated working policy, Samsung did not specify whether it affected executives just in South Korea or all over the world.
Study Links Increased Working Hours To Major Long-Term Health Defects
Research shows that increased working hours do not necessarily improve productivity. As per a Stanford study, overwork leads to decreased total output as average productivity is impacted by stress, sleep deprivation, and other factors while it provides no additional mental or physical benefit to the employees.
The World Health Organization (WHO) found that working more than 55 hours a week would decrease life expectancy and increase the risk of heart disease by 35%.
Also, Read: EU Needs Complete Shake-Up To Match Rivals In Developing New Digital And Green Tech, Says Report
