Samsung India Asks 100 Executives To Leave, More Cuts May Follow

Samsung India Job Cuts: The layoffs come alongside a broader effort to streamline operations in India. It is consolidating its regional offices.

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  • Samsung India is cutting 80-100 jobs in TV and home appliance units due to cost pressures
  • Executives and managers, including director-level staff, are among those asked to leave
  • Job cuts could affect up to 25% of the sales and marketing workforce in electronics

Are smartphone employees at risk of losing their jobs later this year?

Samsung India has started cutting jobs as the electronics major grapples with rising costs, weaker demand and pressure on margins.

Around 80-100 executives in its television and home appliance businesses have been asked to leave, according to media reports. The job cuts are being carried out in batches.

The affected employees include director-level executives and team leaders at Samsung's headquarters. Branch and area managers are also among those impacted. 

Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay

Samsung's electronics business has around 550-600 executives in sales and marketing, excluding its much larger smartphone sales organisation. As many as 25 per cent of the sales and marketing workforce could eventually be affected, as per reports. This includes employees hired directly by Samsung as well as off-roll staff working through manpower agencies.

Employees asked to leave are reportedly being offered three months' salary, along with an additional month's salary for every year of service.

Why Is Samsung Cutting Jobs?

Samsung's India business is facing pressure on several fronts. "Memory chip prices have more than doubled. At the same time, the rupee has weakened and smartphone sales have slowed. These factors have squeezed margins and raised costs for the electronics maker," an industry expert told NDTV

India's smartphone market has also lost momentum. Industry estimates cited in reports suggest smartphone volumes declined by around 11-12 per cent year-on-year. That is significant as Samsung mobile phones account for roughly three-fourths of the company's revenue in India.

The company has also increased prices of some smartphone models by around 5-10 per cent. Higher prices, however, risk putting further pressure on demand. The All India Mobile Retailers' Association has reported a sharp fall in consumer footfall amid repeated price increases. 

However, Samsung's smartphone business has not been included in the current round of layoffs. "The company is hoping for stronger sales during the festive season, particularly around Diwali. Smartphones remain its most important business in India," the expert added.

The mobile division is likely to be reviewed later depending on how sales perform. Another round of workforce rationalisation is also possible after Diwali, particularly in the TV and home appliance businesses. 

Samsung Reshuffles India Operations

The job cuts come alongside a broader effort to streamline Samsung's operations in India. The company is consolidating some of its regional offices. For instance, offices in Ranchi and Patna, as well as Delhi and Gurgaon, are being combined, according to industry executives cited in reports.

Samsung had also considered combining its television and home appliance sales teams to reduce management layers and costs. That plan has reportedly been pushed to the December quarter. "The latest restructuring suggests that Samsung is trying to reduce overheads in parts of its consumer electronics business while protecting areas where it expects stronger growth," said the expert.

The layoffs do not indicate that Samsung is exiting or scaling back its India presence. In fact, the company reported revenue of around Rs 1.1 lakh crore in FY25, a 12 per cent increase from the previous year. Its net profit rose 38 per cent to Rs 11,287 crore, according to its latest filings. 

Home appliances contribute around 11 per cent of Samsung India's sales, making the segment its second-largest category after smartphones. The company is therefore looking to make its sales and distribution structure leaner as demand and costs remain challenging.

Layoffs Not Limited To India

Samsung has also been restructuring its consumer electronics operations overseas. In the US, the company was reported to have cut more than 700 jobs across its display, mobile and other consumer electronics operations. The reductions were part of an organisation-wide effort to align roles with business priorities. 

Globally, Samsung's semiconductor business has benefited from strong memory-chip demand. Its consumer electronics and mobile operations, however, have faced a tougher environment.

For Samsung India, the coming festive season could therefore be crucial. A strong Diwali shopping period could provide some relief to the smartphone business. If demand remains weak, however, the company may have to consider further changes to its workforce and sales structure.

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