Samsung Electronics is reportedly looking at letting go at least 200 executives from its India team, across various functions, including support, home appliances, mobile phones and consumer electronics. That means, at least nine per cent of its 2,000-strong managerial team will be laid off, as reported by ET. The company is experiencing low demand, which has resulted in slow business growth in India.
Those impacted will be given three months’ salary, as is stated in their employment contracts along with a severance of one month’s salary for each year of service.
This news of layoff plans comes at a time when Samsung is dealing with worker unrest in South India. Samsung India’s plant at Sriperumbudur, Chennai, saw about half of its 1800-strong workforce going on an indefinite strike, demanding better wages. The workers are also seeking better working hours and want the company to recognise their union. Operations at the plant have been disturbed for over three days now.
This is a major setback since the plant, though not as big as the other Samsung manufacturing facility in Uttar Pradesh, is responsible for at least 20 per cent of the South Korean company’s revenues in the country ($12 billion) every year. The strike has been timed to cause significant disruption, as it comes just before the festive season, when the demand for electronic items for gifting purpose increases. Therefore, the reduced production will have an adverse effect on the company’s revenues for sure.
To add to the company’s woes, it is reported that Samsung has lost quite a few of its senior talent to competition in recent times.
1 Comment
It’s concerning to hear about such significant layoffs. How will this impact Samsung’s operations and customer support in India?