Samsung Workforce Shifts to Development as Headcount Falls and Labor Costs Reach $32.9 Billion

Samsung Electronics adds more developers

Manufacturing roles and overseas headcount decline

Samsung Electronics Co. is reshaping its workforce around development roles. Overseas headcount and manufacturing jobs declined, while the number of employees in development rose. Labor costs climbed above 45.5 trillion won, or $32.9 billion. Turnover eased, but the company faces the challenge of retaining key talent while keeping the organization dynamic.

An analysis by Hankyung.com of Samsung Electronics' sustainability reports over the past five years found total headcount fell to 259,149 at the end of last year from 266,644 at the end of 2021, a decline of 7,495. The total stood at 267,860 in 2023 and 262,647 in 2024, extending the downward trend.

The drop was steeper overseas. Overseas headcount fell by 20,933 to 134,585 at the end of last year from 155,518 in 2021. Domestic headcount, by contrast, rose by 13,438 over the same period to 124,564 from 111,126.

The shift was more pronounced by job function. Development roles increased by 13,932 to 89,150 last year from 75,218 in 2021. Manufacturing roles fell by 20,299 over the same period to 102,512. Sales and marketing changed little, rising to 23,711 from 23,257, while quality, environment and safety roles edged down to 18,524 from 19,457.

The staffing changes point to a company building its organization around higher-value roles rather than expanding production headcount. Samsung has been pushing technology-focused businesses including AI semiconductors, Galaxy AI and SmartThings-based home appliances, and its human-resources strategy appears focused on securing and retaining talent in critical roles.

Even as headcount shrank, labor costs kept rising. Samsung's employee-related expenses increased to 45.5 trillion won, or $32.9 billion, last year from 34.6 trillion won, or $25.0 billion, in 2021. The figure rose to 37.6 trillion won ($27.2 billion) in 2022, 38.0 trillion won ($27.5 billion) in 2023 and 40.5 trillion won ($29.3 billion) in 2024. That amounts to an increase of 10.9 trillion won, or $7.9 billion, over the period.

Labor costs include wages, retirement benefits and employee welfare expenses recorded in cost of sales, selling and administrative expenses, and research and development costs. The figure is not simply total payroll. It also includes performance-based compensation, benefits and retirement payments. Employees' share of distributed economic value rose to 14.7% last year from 13.9% in 2021. Total headcount fell, but the cost of securing and rewarding development-focused talent appears to have increased.

Turnover also declined. Samsung Electronics' overall turnover rate was 13.9% in 2021, 12.9% in 2022, 10.6% in 2023, 10.1% in 2024 and 8.6% last year. Lower attrition supports organizational stability.

Still, as the workforce shifts toward older and more highly skilled employees, maintaining organizational vitality and redefining roles across generations is becoming a management issue. Employees aged 51 and older accounted for 7.8% of the workforce last year, or 20,327 people, up 1.5 percentage points from two years earlier. Retaining key talent while preserving organizational flexibility as technology and business needs change remains a central task.

An official at a corporate analysis research institute said Samsung Electronics needs to focus its personnel and labor management on solving a difficult equation: strengthening technological competitiveness with fewer employees, controlling a bigger compensation burden and maintaining organizational vitality.

Kim Dae-young, Hankyung.com reporter kdy@hankyung.com