The world’s largest smartphone vendor is not doing well in one of the world’s largest smartphone markets. After local media reported that Samsung is planning major layoffs in China, the company told the South China Morning Post that they have decided to restructure Samsung Electronics China to adapt to the changing business environment.
“China remains an important market for Samsung and we will continue to provide superior products and services for Chinese consumers,” the company said in a statement. It added that it will continue business in the country, including building on its 5G momentum, as it currently has nearly 30% of the 5G handset market there.
The company announced in October that it stopped producing smartphones in its last factory in China. Samsung’s market share in the country has dwindled with the growth of local competitors like Xiaomi and especially Huawei, which stole the thunder from Samsung’s foldable Galaxy Fold this year.
But Samsung isn’t giving up easily. The company started collaborating with local super-app WeChat. Users can now open WeChat mini programs directly from the home screen on Samsung handsets, turning the social platform into something similar to an operating system.