Due to the global decline in consumer spending, Samsung, the top smartphone manufacturer, is rumoured to have reduced production at its enormous plant in Vietnam.
Employees are cited in the Reuters story as the report's source. The manufacturing is being reduced as merchants and warehouses deal with an increase in inventory.
The largest warehouse market in the United States is reportedly filled, and the country's major merchants have issued warnings about sluggish sales as a result of consumers not spending as much as they did prior to and during the early stages of the pandemic.
"We are going to work just three days a week," a plant employee told Reuters. "Some lines are adjusting to a four-day workweek instead of six before, and of course, no overtime is needed."
The damaged manufacturing 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 largely been resolved and that demand would either remain flat or experience single-digit growth.
