Samsung, the world’s leading smartphone manufacturer, has reportedly cut down production of its devices at the massive plant in Vietnam due to the global fall in consumer spending
The report, coming from Reuters, cites employees as the source. The scale back of production comes as the retailers and warehouses deal with a rising inventory.
As per the report, America’s largest warehouse market is full and the major retailers in the United States have warned of slowing sales given that shoppers are not spending as much as they used to before and during the early era of the pandemic.
One of the workers at the plant told Reuters, “We are going to work just three days per week, some lines are adjusting to a four-day workweek instead of six before, and of course, no overtime is needed.”
The manufacturing plant in Vietnam’s northern province of Thai Nguyen has been the most affected. It is one of the two mobile manufacturing bases in the country where Samsung produces half of its smartphones.
While Samsung says that it has not discussed reducing its annual production target in Vietnam, the South Korean giant is optimistic about smartphone demand in the second half of the year as it said during its earnings call last week that supply disruptions had mostly been resolved and that demand would either stay flat or see single-digit growth.
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