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Compensation conditions such as the payment of condolences
Increased efficiency ahead of the retirement of the LCD business next year
Photos = Yonhap News
After the first half of this year, Samsung Display will be retired again. It is being interpreted as part of the work of reducing the size of the liquid crystal display (LCD) business and transforming the corporate structure into a quantum dot (QD) display, a next-generation growth engine.
According to the industry on the 17th, Samsung Display recently paid condolences as compensation and is taking a confident retirement. This confident retirement is conducted in such a way that employees are informed and advised individually.
Previously, Samsung Display announced in March that it will withdraw its liquid crystal display (LCD) business from China later this year to strengthen its competitiveness in the large-scale display industry and move to the QD display business.
Since then Samsung Display has implemented a true “reduction in body size”. The employees of the large LCD division were converted into small and medium-sized divisions and QD divisions and, in May, some employees were also retired. Samsung Electronics for all employees(65,900 -0.60%)Samsung Biologics, Samsung SDI and other Samsung subsidiaries have also been implemented.
Some observers say Samsung Display’s confident retirement is due to the general slowdown in business due to deteriorating conditions in the industry. Samsung Display’s earnings improved from the previous quarter with an operating profit of 470 billion won in the third quarter of this year, but compared to the same period last year, it was only half the level.
Market share is also falling. According to Samsung Electronics’ 3Q quarterly report, the smartphone panel market share of its flagship Samsung Display was 39.6% (company estimate) in the third quarter, down 1.7 percentage points. compared to the first half (41.3%).
The share of the smartphone panel, which reached 47.6% in 2018 and 43.6% last year, dropped to 30% for the first time. This year, it is analyzed that the market share has decreased with the combination of the new coronavirus infection (Corona 19) and the intensification of competition with Chinese companies.
Samsung Electronics hasn’t disclosed its market share in the large-scale display industry since this year when it announced the suspension of LCD panel production, but the loss is estimated to continue. Earlier this year, Samsung Display said it would only manufacture LCD panels until this year and retire from related businesses starting next year.
In the fourth quarter of this year, operating earnings were expected from the effect of Apple’s iPhone 12 launch. There are also rumors that the payout will be “zero” (0%).
OPI, an incentive paid upon reaching the annual performance target, is paid from a limit of 20% of the excess profit to a maximum of 50% of the annual salary at the end of January, based on the trend of the previous year . A Samsung Display official said, “Desired retirement is a system that always works,” and said, “There is no large-scale artificial reduction in labor.”
Seongsu Bae, Hankyung.com reporter [email protected]
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