Samsung found itself on the brink of survival: the head of the company demanded decisive actions from top managers to overcome the crisis

Samsung Electronics CEO Lee Jae-yong has called on the company’s executives to take decisive action amid growing challenges from artificial intelligence (AI) technology. Calling the current situation “critical,” Lee Jae-yong urged employees to adopt a “do or die” mentality.

The CEO’s call was made in a video message addressed to about 2,000 top managers from various Samsung divisions. According to the Korean media outlet Yonhap News Agency, the message also presented the management principles of the company’s founders, Lee Byung-chul and Lee Kun-hee.

In his statement, Lee Jae-yong stressed the need for urgent strategic changes within the company. He said, “Samsung is facing a survival challenge [in the new technological environment], and we must deeply analyze the situation, starting with the actions of the management.” He also called for investments in the future, even if it means giving up short-term profits.

During the seminar, top managers were presented with small symbolic crystal plaques with the engraved inscription: “Samsung people are strong in spirit, know how to turn around a crisis situation, and will fiercely confront competitors.”

Image source: Babak Habibi / Unsplash

The reason for such drastic measures was Samsung’s struggle in the artificial intelligence (AI) semiconductor sector, especially in the area of ​​high-bandwidth memory (HBM), where the company is losing to its main competitor, SK hynix.

In addition, Samsung’s share in key markets including TVs, smartphones, and DRAM all declined last year. According to the latest report, Samsung’s global share in the TV segment fell from 30.1% in 2023 to 28.3% in 2024. Its smartphone market share fell from 19.7% to 18.3%, and its position in the DRAM sector fell from 42.2% to 41.5%.

As a result, weak sales in the memory segment and delays in the release of HBM caused Samsung’s financial results to be below expectations, with analysts forecasting a 22.5% decline in the company’s operating profit in the first quarter.