Samsung India layoffs: Up to 100 executives reportedly asked to leave amid restructuring
Follow UsAround 80-100 Samsung executives have reportedly been asked to leave, with layoffs happening in batches.
Up to 25% of the sales and marketing workforce in the electronics business could reportedly be affected.
Samsung’s smartphone division has been spared for now, despite slowing smartphone sales in India.
Samsung India has reportedly started reducing its workforce in its television and home appliance businesses as the company faces pressure from rising costs and weaker consumer demand. As per the report by The Economic Times, around 80 to 100 executives have been asked to leave so far, with layoffs being carried out in batches.
SurveyThe affected employees reportedly include senior officials, team leaders and branch and area managers. The job cuts are currently focused on Samsung’s consumer electronics operations, while its much larger smartphone business has not been affected for now.
Samsung may cut more jobs
The report suggests that the restructuring can impact a larger number of employees. An industry executive told ET that up to 25 per cent of the sales and marketing workforce in Samsung’s electronics business could eventually be affected, including off-roll employees hired through manpower agencies.
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Samsung’s domestic electronics sales team reportedly has around 550 to 600 executives. Employees who have been affected said termination letters were being issued in small batches. Some were reportedly asked to leave immediately without completing their notice periods. Samsung is said to be offering three months’ salary as severance, along with an additional month’s salary for every year of service.
Rising costs and weaker demand behind restructuring
Samsung’s consumer electronics business has been under pressure due to higher raw material costs and weaker demand. The rising memory prices and the depreciation of the Indian rupee have also increased costs for electronics companies.
The company is reportedly consolidating its branch network to reduce expenses, with some regional offices being merged. A proposed merger between the television and home appliance sales teams has also reportedly been delayed until the December quarter.
Samsung’s smartphone business, which contributes around three-fourths of its India revenue, has been spared from the current layoffs. However, smartphone sales have also slowed, with industry estimates pointing to an 11-12 per cent year-on-year decline.
