(Yicai Global) Nov. 5 -- South Korea's Samsung Electronics has confirmed that the leading global phone vendor is optimizing its business structure in China to put more focus on the nation's nascent fifth-generation wireless networks market.

Samsung China has adjusted its business in response to internal uncertainties, as well as external ones in the business environment, in order to promote rapid growth in China's 5G market, the Suwon-headquartered firm said in a statement yesterday. 

The response came on the heels of Chinese news reports of mass layoffs. Tencent News cited insiders yesterday who said that Samsung's 11 China branches will be merged into five while the firm will lay off one-third of its employees in the country, mainly involving handset and marketing departments.

Over the past two years, Samsung's phone sales in China have declined whereas domestic rivals Huawei Technologies and Xiaomi have increased their market shares. In September, Samsung terminated production at its last Chinese plant in Huizhou while expanding in Vietnam and India.

Even if production may move to countries with cheaper labor, sales in China will not end. Last month, the company opened its first Chinese flagship experience store across the street from Apple in downtown Shanghai. 

Editor: Emmi Laine