Due to the worldwide decline in consumer spending, Samsung, the top smartphone maker, is said to have reduced output at its enormous facility in Vietnam.
Employees are cited in the Reuters story as the report’s source. Manufacturing is being reduced as merchants and warehouses cope with increased inventory.
The biggest warehouse market in the United States is reportedly filled, and the country’s leading merchants have issued warnings about sluggish sales due to consumers not spending as much as they did before and during the early stages of the epidemic.
“We are going to work only three days a week,” a plant employee told Reuters. “Some lines are adjusting to a four-day workweek instead of six previously, and of course, no overtime is required.”
The damaged industrial facility is located in Thai Nguyen, a province in northern Vietnam. It is one of the two locations in the nation where Samsung makes half of its smartphone lineup.
Although the South Korean giant Samsung claims that it has not discussed lowering its annual production target in Vietnam, it is optimistic about the demand for smartphones in the second half of the year after claiming during its earnings call last week that supply disruptions had primarily been resolved and that demand would either remain flat or experience single-digit growth.