The world's leading mobile phone maker, Samsung, has reportedly reduced the production of its devices at their large factory in Vietnam. This is allegedly done following the decline in consumer demand for smartphones globally.
The report, which comes from Reuters, cited internal Samsung factory employees as the source. Production cuts occur as retailers and warehouses deal with increased inventory.
America's largest warehouse market is already full and major retailers in the United States have warned of slowing sales as shoppers are not spending as much as they used to before and during the early era of the pandemic.
“We will work only three days per week, some lines adapt to a four-day work week instead of the six days before, and of course, no overtime is required,” one worker at the factory told Reuters.
A manufacturing plant in Vietnam's northern province of Thai Nguyen was the hardest hit. It is one of two mobile phone manufacturing bases in the country where Samsung manufactures half of its phones.
While Samsung has said it has not discussed reducing its annual production target in Vietnam, the South Korean giant is optimistic about demand for mobile phones in the second half of the year. This is exactly what its earnings report said last week that the supply disruption has been largely resolved.
