Samsung has reportedly introduced a six-day workweek policy for its executives. The company aims to instill a sense of urgency in its leadership amid mounting geopolitical and macroeconomic risks. It wants executives to work an extra day each week to formulate emergency measures to tackle this business uncertainty. The new policy is effective as early as this week for some business units, with others to follow soon.
Samsung introduces six-day workweek for executives to tackle business challenges
Samsung had a horrendous financial performance in 2023. Several business units performed worse than expected, leading to a whopping 85% decline in annual profit. The company was particularly affected by a slowdown in the semiconductor market. As the industry starts to recover, its earnings are also looking better. The Korean firm recently shared its earnings guidance for the first quarter of 2024 and the figures are much healthier.
However, economic concerns are still around, creating business uncertainty. To tackle this, Samsung has ordered executives at all business units, from smartphone and display divisions to construction, sales, finance, and more, to work six days a week. According to The Korea Economic Daily, all Samsung executives will work either on Saturday or Sunday following five days of regular workweek from Monday to Friday.
“Considering that performance of our major units, including Samsung Electronics Co., fell short of expectations in 2023, we are introducing the six-day work week for executives to inject a sense of crisis and make all-out efforts to overcome it,” the Korean publication cites a Samsung Group executive. Executives of Samsung C&T, Samsung Heavy Industries, and Samsung E&A have been voluntarily working six days a week since the start of 2024.
Samsung’s six-day workweek policy does not apply to employees below the executive level. They will continue to work five days a week, a policy the company introduced in 2003. This also means the leadership group will use the extra day for special purposes. They will review and modify business strategies to adapt to the changing market situation. The Russia-Ukraine war and geopolitical tensions in the Middle East are on top of Samsung’s mind.
Other Korean firms are also shifting to emergency mode
Samsung isn’t the only Korean company feeling the heat of ongoing business uncertainty and a rapid depreciation of the Korean currency. Other firms are also shifting to emergency mode amid these economic headwinds. Energy-to-telecom conglomerate SK Group now holds weekly Saturday meetings of its CEOs. It previously held CEO meetings once a month on a weekday. Other Korean conglomerates are expected to follow suit.