Samsung India Faces Layoffs

South Korean electronics giant Samsung has reportedly begun reducing its workforce in India as part of efforts to control costs. According to information based on an Economic Times report, around 80 to 100 executives working in the television and home appliances divisions have already been removed in batches. The affected employees reportedly include director-level officials, headquarters team leaders, branch managers and area managers. The company is said to have issued termination letters in small batches, with some employees reportedly asked to leave without being given a notice period.

Samsung is facing pressure on profitability due to higher component and raw material costs, a sharp rise in memory chip prices and a decline in the value of the rupee this financial year. The Indian smartphone market has also reportedly contracted by around 11 to 12 percent year on year, affecting the company’s revenues. Industry sources said the workforce reductions could eventually extend to sales, marketing and electronics divisions, potentially affecting up to 25 percent of staff, including off-roll employees. However, the smartphone division has not been affected in the current round of layoffs, with Samsung reportedly expecting demand to improve during the Diwali season. The company is also said to be reviewing its wider India operations, including branch network consolidation and restructuring.