The final three months of 2022 are projected to see Samsung’s profits decline by 69% to their lowest level in eight years.
The largest manufacturer of memory chips, smartphones, and TVs in the world anticipated that its operating profit would drop to about 4.3tn won ($3.4bn; £2.8bn) for the time period.
It occurs as the slowdown in the world economy affects the cost of memory chips and the demand for electronic devices.
As consumers tighten their belts, global technology giants have recently taken a hit.
It was Samsung’s lowest quarterly profit since 2014 and missed investor expectations of around 5.9 trillion won.
The South Korean company said it saw a bigger-than-expected fall in demand for computer chips as customers cut their stocks of the key components for digital devices.
“For the memory business, the decline in fourth-quarter demand was greater than expected as customers adjusted inventories in their effort to further tighten finances,” Samsung said in the statement.
“Smartphone sales and revenue decreased due to weak demand resulting from prolonged macro issues,” it added.
Samsung is scheduled to publish its full financial statement on 31 January.E
It is the latest major technology company to reveal how weakness in the global economy is impacting its business.
Sales have also slowed after demand boomed during the pandemic when customers at home spent a lot online.
Tens of thousands of jobs are being shed across the global technology industry, amid slowing sales and growing concerns about an economic downturn.
This week Amazon said it planned to axe more than 18,000 jobs, the largest number in the firm’s history, as it cuts costs.
In November, Meta announced that it would cut 13% of its workforce.
The first mass lay-offs in the social media firm’s history will result in 11,000 employees, from a worldwide headcount of 87,000, losing their jobs.
Meta chief executive Mark Zuckerberg said the cuts were “the most difficult changes we’ve made in Meta’s history”.
The news followed major layoffs at Twitter, which cut about half its staff after multi-billionaire Elon Musk took control of the firm in October.