Samsung Electronics is experiencing record-high profits, primarily driven by the surging demand for semiconductors crucial to artificial intelligence development. The company anticipates an operating profit of approximately 300 trillion won this year. In a significant move, Samsung entered a landmark agreement with its union on May 27, allocating $416,000 in bonuses for some memory division employees. This deal directs 10.5% of its semiconductor division's operating profit towards these special bonuses, removing previous salary caps on performance-linked incentives and extending across a 10-year earnings period.
This windfall for Samsung's chip workers stands in stark contrast to a broader trend of significant layoffs across the tech industry. In 2026 alone, there have been 344 layoffs at tech companies, impacting 144,355 individuals, averaging nearly 1,000 job losses per day. This follows 783 layoffs in 2025, which affected 245,953 people, or 674 daily. Companies like Amazon, which unveiled plans for 16,000 job cuts this year, and Meta, aiming to reduce its workforce by 20% by 2028, cite AI and automation as reasons for increased workforce efficiency.
The disparity highlights a growing "two-tier" workforce. Companies manufacturing the hardware essential for AI, such as Samsung and SK Hynix, are thriving and rewarding their employees generously. These workers are seen as building the "picks and shovels" of the AI gold rush. Conversely, software and services companies are using AI to reduce their reliance on human labor, leading to leaner workforces and job displacements. This trend is causing concern that entire career paths could become obsolete before younger workers even enter the market.
Despite the current bonuses, Samsung is also accelerating plans for automation, aiming for fully unmanned semiconductor fabs by 2030 through its Data Sharing Eco Platform (DSEP). This initiative, which has garnered around 60 partners, will pool and analyze real-time process data using AI, potentially reducing the need for human labor in the long term. This strategic shift could diminish the leverage of its unionized workers, especially after recent negotiations secured significant bonuses tied to the company's operating profits.
