Samsung Electronics will make significant cuts in the year-end bonuses for employees in its struggling mobile unit, the Korea Times reported.

The newspaper quoted an unnamed company source as saying it’s too early to say how much they would be reduced, but rumours suggest it will pay 27-30 per cent of an employee’s annual salary.

Korean companies often boost low salaries with large bonuses. Samsung traditionally shares part of any profit that exceeds its target by paying a bonus of half an employee’s annual salary, the Times said. The profit sharing is based on each division’s performance.

The expected lower payment would be the first time in ten years Samsung’s mobile unit hasn’t paid the 50 per cent bonus, the Times said. Staff in its memory chip division, however, reportedly will receive the maximum bonus.

Earlier this month Samsung said it would record overall profit growth in Q3, as a strong performance by semiconductors is expected to offset the downward drag from the smartphone business.

The company said its Q3 operating profit will be KRW7.3 trillion ($6.3 billion), an increase of 78 per cent from KRW4.1 trillion in the year-ago period, with the weak South Korean won aiding the semiconductor unit.

The performance would represent the company’s first quarterly profit gain in two years. Its smartphone business, however, continues to struggle. Q2 profit in the mobile business fell, as sales of its flagship Galaxy S6 line performed below expectations. Analysts believe this performance carried over into the third quarter.