Samsung axes jobs at financial units

Unlike flourishing electronics affiliates, financial units of Samsung Group have been struggling to stay afloat, hit hard by the bearish stock market, low interest rates and sluggish consumption amid the prolonged global economic slump.

Now, the country’s largest family-controlled conglomerate is posed to axe hundreds of jobs at its securities, insurance and credit card businesses to cut operating costs and boost management efficiency in anticipation of more unfavorable business conditions next year.

According to financial industry sources Friday, Samsung Fire and Marine Insurance dismissed 150 workers through the early redundancy program early this month. In November, the firm received applications from employees on its payroll for more than 12 years.

In 2010, 100 employees quit through the early retirement scheme, higher than the 60 in 2009.

“The latest retirement program was strictly voluntary. The company forced no one to quit. We offered all retiring workers severance payments, and will help them find jobs at other firms or start a business,’’ an official at Korea’s largest non-life insurer said. “Even though we downsized our workforce, we will strengthen our sales and marketing units to solidify our No.1 position.’’

Samsung Card, which has recently become the nation’s No. 2 in terms of revenue, also dismissed 100 employees through the early redundancy scheme as part of its efforts to cope with falling card transaction fees, stagnant consumption and other deteriorating business conditions.

The plastic issuer also restructured its workforce by allocating more manpower to sales and marketing, while downsizing business support divisions.

Samsung Securities and Samsung Asset Management are also aiming to slash its workforce to cope with the continued bearish stock market.

However, Samsung Life Insurance has decided not to slim down its workforce. Instead, it has assigned more manpower to overseas business divisions in a bid to accelerate its overseas ventures.

Samsung has been investing to establish a foothold in Southeast Asia and India over the years to find overseas new growth sources.

“Through the latest organizational restructuring, we assigned more executives to overseas business units. Using our strong presence in Southeast Asia, we will do everything to become one of the world’s top life insurers,’’ a Samsung life official said.

Not only Samsung’s financial units, banks and other financial services firms have been implementing radical manpower overhaul to scale down their organizational structures. Some poor performing retail branches have been axed.

Early this month, 199 employees at Citibank Korea quit through the early retirement program.

The bank introduced it in October as its bottom line continues to deteriorate, due to falling interest rates and soaring non-performing loans. In 2008, 300 Citibank employees voluntarily left the company.

Nonghyup Bank also plans to ask senior managers and executives slated to retire in one or two years to quit early, while Shinhan Bank, which unloaded 236 employees in January, is considering enforcing the second round of the early retirement early next year.

KB Kookmin Bank and other commercial lenders are also looking to send hundreds of workers home in the coming months. <The Korea Times/Lee Hyo-sik>