Foreign IT companies reduced employees from Korean branches…654 employees cut from Korea HP
[ Lim Seong Yeop starleaf@ ] | 2017-06-22 10:55:24
Major foreign information technology (IT) corporations in Korea showed a significant reduction in their workforce last year.
Hewlett - Packard (HP) workforce has been calculated as 654 as of April this year, according to a corporate information provider Kredit Job on June 21. This is a decrease of 105 people compared to the same period last year (759 people), 13.8% of all employees cut in one year. HP Korea in November 2015 and Hewlett Packard Enterprise (HPE) were spun off. The total number of HP employees in Korea is the number of employees of HP (Hewlett-Packard) Enterprise (HPE), which is engaged in server and software business. Considering that HPE`s number of employees has been one year since it was released this year, it is not an employee transfer to a company that has been spun off, but a large-scale resignation of pure HPE employees.
According to the Financial Supervisory Service sources, Intel Korea spent KRW 4 billion in employee retirement benefits last year. This is a 37.9 percent increase from last year`s KRW 2.96 billion. The surge in retirement benefits among sales and administrative expenses accounted for a significant decline in the number of workers in the previous year. Actual salary and bonus decreased by KRW 4.3 billion from KRW 37.6 billion in 2010 to KRW33.3 billion in 2015.
The number of IBM employees in Korea also declined by 8.94% to 1,639 from 1,800 in 2016. The salaries paid for the same period also decreased from KRW 155.3 billion to KRW 144.2 billion. IBM Korea is said to have been influenced by the restructuring of its business structure, which started at its headquarters. IBM has begun work on IGF (IBM Global Financing) in the global region, confirming that IGF in Korea was spun off in October last year.
As a result, the number of employees in global IT companies seems to be falling due to the sluggish domestic IT market as well as the slimming policies of global headquarters. In the case of HPE, the withdrawal of various businesses from the global headquarters and the reorganization of business divisions affected employees` retirement. In fact, HP acquired EDS, an IT services company, in May 2008 to strengthen its service business. After the merger of EDS Korea in August 2009, HP Korea has been operating IT service business in Korea. According to the industry, however, HP Korea is not known to be doing IT service business in Korea anymore. The security business also sold HP Tipping Points to Trend Micro in 2015 and has withdrawn from the security business. An industry representative stated, "HP decided not to do the IT service business in Korea and employees have been decreased due to Tipping Points disposal.”
Intel Korea fell in membership due to the PC market downturn. Meanwhile, the global PC market has been shrinking for years. According to market researcher Gartner, worldwide PC shipments in the first quarter of 2017 declined 2.4 percent year-on-year to 62.2 million units. It is the first time since 2007 that the world PC market has reached less than 63 million units. Intel is still making the majority of its sales in PC semiconductors in IT market.
Particularly, it is analyzed that the decline in the number of Korean companies in the foreign IT companies is due to the small share of the Korean market. Also, as in the early 2000s, the role of the IT test bed in the Korean market has also declined. The industry expert said, "The Foreign corporations’ Korean branches perform 1-2 percent more than the global market."
By Lim Seong Yeop starleaf@
[ copyright ⓒ The Digitaltimes ]
Hewlett - Packard (HP) workforce has been calculated as 654 as of April this year, according to a corporate information provider Kredit Job on June 21. This is a decrease of 105 people compared to the same period last year (759 people), 13.8% of all employees cut in one year. HP Korea in November 2015 and Hewlett Packard Enterprise (HPE) were spun off. The total number of HP employees in Korea is the number of employees of HP (Hewlett-Packard) Enterprise (HPE), which is engaged in server and software business. Considering that HPE`s number of employees has been one year since it was released this year, it is not an employee transfer to a company that has been spun off, but a large-scale resignation of pure HPE employees.
According to the Financial Supervisory Service sources, Intel Korea spent KRW 4 billion in employee retirement benefits last year. This is a 37.9 percent increase from last year`s KRW 2.96 billion. The surge in retirement benefits among sales and administrative expenses accounted for a significant decline in the number of workers in the previous year. Actual salary and bonus decreased by KRW 4.3 billion from KRW 37.6 billion in 2010 to KRW33.3 billion in 2015.
The number of IBM employees in Korea also declined by 8.94% to 1,639 from 1,800 in 2016. The salaries paid for the same period also decreased from KRW 155.3 billion to KRW 144.2 billion. IBM Korea is said to have been influenced by the restructuring of its business structure, which started at its headquarters. IBM has begun work on IGF (IBM Global Financing) in the global region, confirming that IGF in Korea was spun off in October last year.
As a result, the number of employees in global IT companies seems to be falling due to the sluggish domestic IT market as well as the slimming policies of global headquarters. In the case of HPE, the withdrawal of various businesses from the global headquarters and the reorganization of business divisions affected employees` retirement. In fact, HP acquired EDS, an IT services company, in May 2008 to strengthen its service business. After the merger of EDS Korea in August 2009, HP Korea has been operating IT service business in Korea. According to the industry, however, HP Korea is not known to be doing IT service business in Korea anymore. The security business also sold HP Tipping Points to Trend Micro in 2015 and has withdrawn from the security business. An industry representative stated, "HP decided not to do the IT service business in Korea and employees have been decreased due to Tipping Points disposal.”
Intel Korea fell in membership due to the PC market downturn. Meanwhile, the global PC market has been shrinking for years. According to market researcher Gartner, worldwide PC shipments in the first quarter of 2017 declined 2.4 percent year-on-year to 62.2 million units. It is the first time since 2007 that the world PC market has reached less than 63 million units. Intel is still making the majority of its sales in PC semiconductors in IT market.
Particularly, it is analyzed that the decline in the number of Korean companies in the foreign IT companies is due to the small share of the Korean market. Also, as in the early 2000s, the role of the IT test bed in the Korean market has also declined. The industry expert said, "The Foreign corporations’ Korean branches perform 1-2 percent more than the global market."
By Lim Seong Yeop starleaf@