At Samsung DX's First-Ever Loss, Employees Born in the 1990s Were the First to Leave

As Samsung Electronics' Device eXperience Division (DX Division) struggles, including its first-ever quarterly loss, the age of employees taking part in the Voluntary Early Retirement Program is getting younger in the Mobile eXperience Division (MX Division), which has long supported earnings by leading the 'Galaxy miracle.' Recently, it has been confirmed that even employees born in the 1990s, who were not originally eligible for the program, have been voluntarily expressing interest in early retirement and then leaving the company. With rising cost pressures and intensifying competition from Chinese rivals increasing uncertainty in the DX Division, younger employees appear to be seeking new career paths while taking advantage of severance packages worth hundreds of millions of won.
■ Employees born in the 1990s are the first to say, "I'm leaving"
According to industry sources on the 17th, employees born in the 1990s in Samsung Electronics' MX Division have recently chosen the Voluntary Early Retirement Program and left the company on their own. They are younger than the usual target group for the program and, rather than being approached first by the People Team, they reportedly expressed their intention to retire early and then proceeded with the departure.
Samsung Electronics has operated the Voluntary Early Retirement Program on an ongoing basis for several years. In general, the People Team has first approached senior employees, such as those at CL4 level, equivalent to department heads, to discuss whether they would take part.
Recently, however, younger employees, including those born in the 1990s who are not eligible for the program, have instead been asking the company first whether early retirement is possible and under what conditions. As uncertainty over business growth increases, many younger workers appear to believe it is better to leave with substantial compensation and look for a new path.
The size of the compensation package also appears to be influencing this trend. Because severance under the program is calculated after considering years of service, performance ratings, and other factors in consultation with the People Team, the amount can vary even among employees with the same tenure, division, and role. Still, the overall payout has reportedly become larger recently. Internally, CL2 employees, which used to correspond to staff and assistant manager levels, are said to receive about 400 million won, including Performance Share Unit (PSU) awards, while CL4 employees, equivalent to department heads, can receive around 800 million won. The PSU is also understood to be guaranteed at 200%.
■ The DX Division's first loss deepens the sense of crisis
The lower age of employees taking voluntary early retirement is seen as linked to the difficult business environment facing Samsung Electronics' DX Division. The DX Division, which includes home appliances, visual display, MX Division, and network businesses, posted revenue of 48 trillion won and an operating loss of 800 billion won in the second quarter of this year. This was the first quarterly loss since the division was launched. In particular, the MX Division, which has driven Samsung Electronics' set business performance with Samsung Galaxy smartphones, recorded revenue of 33.2 trillion won and an operating loss of 700 billion won in the second quarter. Flagship sales remained solid, led by the Samsung Galaxy S26 series, and the Samsung Galaxy A series also sold well, but the division was hit by rising component costs and broader industry-wide cost pressures. There are also concerns that memory prices continue to rise, leaving little sign of a near-term earnings recovery. TV and home appliances also posted losses, adding to profitability pressure across the DX Division.
Discontent over compensation gaps is also cited as a reason for leaving the company. In May, after labor and management reached an agreement on wages and a special management performance bonus was introduced only for the Semiconductor Division, Roh Tae-moon, head of the DX Division, stepped in to reassure employees, saying, "I believe many of you must have felt left out, deprived, disappointed, and let down by the company." However, internal backlash remains.
An industry official said, "Recently, I understand that even younger employees are checking the terms or expressing their intention first," adding, "Because the compensation is substantial, there is a continuing view that taking the package and seeking a new career is one option."
[email protected] Im Subin, Kim Junseok, Jeong Wonil Reporter