Samsung Electronics released an announcement on its official website on the 6th (Wednesday), saying that it would respond to the rapidly changing market environment. After careful study, Samsung Electronics decided to stop selling TV, monitors and other home appliances in the Chinese Mainland market. For users who have purchased Samsung home appliances, Samsung Electronics will continue to provide after-sales services in strict accordance with laws and regulations such as the Consumer Rights Protection Law and the national three guarantee regulations, and the legitimate rights and interests of users will not be affected.

Samsung Electronics stated in response to common questions about business restructuring that mobile phone products are sold normally in China. The products that have been discontinued include televisions, monitors, large commercial displays, air conditioners, refrigerators, washing machines, dryers, integrated washing and drying machines, clothing care machines, speakers, projectors, vacuum cleaners, air purifiers, and all other household appliances.

Samsung Electronics' latest Q1 financial report shows that its visual display (VD) and home appliance (DA) business revenue was 14.3 trillion Korean won, a year-on-year decrease of 1% and a month on month decrease of 3%. Its operating profit was 0.2 trillion Korean won, a year-on-year decrease of 33.3%. To cope with the decline in VD and DA businesses, Samsung Electronics has previously stated that it is implementing a "selection and concentration" strategy to strengthen long-term competitiveness by reducing costs and improving structural efficiency.

Long Xiyou, the head of Samsung's Visual Display (VD) division, has previously publicly stated that "the difficulties in China's business are a fact" and that "related businesses are being examined in various forms and are currently being promoted".

According to a report on May 7th, Samsung Electronics' subsidiary in China has officially notified its employees through an internal video conference the day before that the company plans to divest its home appliances and surveillance businesses in China. The follow-up process will be determined through consultation between the human resources department and the affected employees and their respective departments. It is expected that during this process, the company will also announce specific compensation standards one by one.

The compensation plan currently under discussion is "N+3" or "N+4". 'N' represents length of service.

According to the Chinese Labor Contract Law, the basic compensation standard is to pay one month's salary for each full year of service. Service for six months but less than one year will be counted as one year. Those who have served for less than six months will be paid half a month's salary. The salary standards and length of service for high-income employees are subject to separate regulations. The salary standards for N+3 and N+4 employees are higher than the statutory standards. There are also rumors that according to Samsung Electronics' internal practices, eligible employees for retirement may receive a Samsung smartphone as a gift.

Samsung Electronics insists that the company will not completely withdraw from the Chinese market. Although sales of televisions and home appliances will cease, the mobile device, semiconductor, and medical equipment businesses will continue to be retained.

*Disclaimer: The above content is reproduced on the WeChat official account of the semiconductor industry circle, which does not represent the views and positions of the company, but only for exchange and learning. If you have any questions or objections, please contact us.