While on the one hand Samsung claims to have generated 2000 jobs last year, it is now reported that in the face of stiff competition in India’s smartphone market, it is planning to lay off a 1000 employees in the country.
The Company is reported to have suffered a lot in terms of profit margin and is trying to take corrective measures by reducing its workforce in India. It has already cut 150 jobs in the telecommunication networks division and had cut down on hiring since April 2019. The layoff will impact its sales, marketing, R&D, manufacturing, finance, human resources and corporate relations departments in the next four months.
Its present workforce strength in the country is about 20,000. Apparently, the Company will now focus more on generating more profits than revenue in India.
The Company is aiming to make its workforce leaner so that it can allocate resources to the areas that are profitable, and at the same time invest in research and development, set up assembly lines, and also introduce new technologies.
Samsung, which had once dominated the smartphone and televisions market, is now facing strong competition from Xiaomi, Realme, OnePlus and other players.
However, the Company maintains that its commitment to India remains unchanged and will continue to invest across its businesses. Samsung recently built what is probably the world’s largest mobile factory in Noida, with the objective of researching and exploring new businesses, such as 5G network.