Samsung India has begun reducing staff in its television and home appliance divisions as part of a wider restructuring. Around 80–100 executives have been asked to leave in batches. Those affected include senior officials, team leads, branch managers, and area managers.
Employees have reportedly been issued termination letters daily in small batches, sometimes without notice periods. Severance packages include three months’ salary plus an extra month’s pay for every year of service.
The cuts reflect growing cost pressures and weak consumer demand. Memory chip prices have more than doubled, while the rupee has fallen nearly 10 per cent this financial year, making imported smartphones and electronics more expensive. At the same time, raw material costs have risen, squeezing margins.
India’s smartphone market has also slowed, with volumes down about 11–12 per cent year on year. This is significant for Samsung because mobile phones generate nearly three fourths of its India revenue. Although an ET report suggests that the smartphone team has been spared for now, the television and appliance businesses are under strain.
Industry sources suggest the scale of layoffs could expand, with up to 25 per cent of sales and marketing staff in consumer electronics at risk. This includes both direct employees and contract workers hired through agencies. Samsung’s domestic electronics sales team has about 550–600 executives, separate from its larger smartphone sales force.
Samsung has reportedly struggled to grow in premium categories such as air conditioners despite aggressive efforts. With rising costs and falling demand, it is now reportedly trying to consolidate operations to protect profitability.