Samsung is facing a significant drop in profits, the biggest in a decade, prompting the company to cut production.
According to The Wall Street Journal, Samsung warned its operating profit for January to March will come in 95.8% lower than the previous year. Revenue for the period is expected to drop 19%.
The company is facing the same headwinds as the rest of the industry, with the computer and electronics market slowing down over economic concerns. Tensions between the US and China have also raised the stakes, adding to the unease in the market.
As a result, Samsung is taking measures to reduce its production and optimize its manufacturing, all in an effort to let demand catch up with the glut of chips currently on the market.
Samsung’s announcement comes on the heels of Apple halting its orders for M2 chips on similar low demand for its MacBook line of computers, normally a strong seller that bucks economic trends better than most.