SEOUL, KOREA - Samsung Life Insurance Co. has completed its restructuring measure focusing mostly on lower-level employees. As it was originally intended to relieve the top-heavy organizational structure, criticism is mounting within the company.

 

According to insurance industry sources on May 16, Samsung Life confirmed the roster of those who will be reassigned to other companies within the group. The employees on the list will begin working in new workplaces effective on May 19. The total number of employees to be relocated is 1,000, more than 90 percent of whom are in their junior manager level or below.

 

As many as a half of the 1,000 Samsung Life employees will move to Samsung Life Services, the customer service subsidiary. Most of the workers in claims and counselling units within the life insurers have been transferred to the service subsidiary. About 100 will be reassigned to Samsung Electronics and Samsung Fire & Marine, while 10 to 15 each will go to other group affiliates such as Samsung SDI, Hotel Shilla, Credu, and Samsung Biologics. The remaining 200 will retire from the company and open independent insurance sales offices or get a job as customer service operators.

 

Unlike the earlier promises that the downsizing would target higher-level managers, the latest measure focused mostly on relatively younger workforces below assistant manager levels. To this, a Samsung Life official responded, "Our customer service unit consists of mostly lower level employees. In addition, other group affiliates were reluctant to take in higher-ranking managers. That's why we had to let go mostly lower-level employees this time."