Korea-based Samsung will implement restructuring for its China business and will shut down its seven sales points without employee layoffs.

A representative from Samsung said that the company will close its seven sales points in China's northern, eastern, southern, central, southwestern, northwestern, and northeastern regions, and further divide its China businesses into 22 bases. Samsung's Beijing headquarters will manage the 22 bases more closely. However, the representative denied the rumor about employee layoffs and said that the company will not cut any employees during the restructuring.

Samsung's performance in the Chinese market has not been satisfactory in recent months. Statistics from the market research firm Counterpoint Research showed that during the first quarter of 2017, Samsung's smartphone shipment in China decreased by 60% year-on-year to 3.5 million units. Meanwhile, its market share decreased from 8.6% to 3.3%, which pushed it out of the top five.

Samsung announced on May 11, 2017 that the company appointed Choi Kyung-sik as new head of its China business. Choi succeeded Lee Sang-chul who would be leading the company's Southeast Asian operations.