The Device eXperience (DX) division of Samsung, responsible for the production of smartphones, tablets and other products in the Galaxy line, implemented significant cost cuts. Essa measure is a response to the growing memory crisis, which has driven up component prices. The situation affects the South Korean giant in all operations, including internal transactions between DX and its semiconductor division, Samsung DS. The complexity of this scenario requires drastic solutions to maintain the competitiveness of products such as the Samsung Galaxy S26 Ultra, where the cost of memory is a critical portion of expenses.
New rules for travel and remuneration
Among the visible measures to contain expenses is the ban on business class travel for Samsung DX executives, specifically on frequent international business trips. Essa guideline aims to generate substantial savings in operational costs, marking a significant change in travel privileges for management. The decision reflects the seriousness with which the company approaches cost containment.
Adjustments were made to salary ranges for executives holding positions below the vice president level, resulting in more modest compensation. Paralelamente, voluntary retirement criteria were modified, offering less flexibility and reduced incentives for managers who planned to leave the corporation. Essas joint actions aim to optimize the cost structure of the DX division.
Divergence of results between divisions
Samsung DX projects to record negative financial results during the first quarter of this year. Este is a direct reflection of intense market pressures and continually rising memory component costs. On the other hand, Samsung DS, the semiconductor division, expects to end the year with record revenue numbers, highlighting the company’s complex and paradoxical internal economic scenario.
