Samsung India Slashes Jobs Amidst Sales Slump

Samsung India has initiated phased layoffs, impacting its television and home appliance sectors due to mounting pressure on smartphone sales and profit margins. The surge in memory chip prices, which have more than doubled, has exacerbated the situation. Reports indicate that 80 to 100 executives, including director-level officials and team leads, have already been terminated.

Further workforce reductions are anticipated, with up to 25% of the sales and marketing staff in the electronics business potentially affected. While the smartphone division, Samsung's largest local business, is currently insulated from these cuts, overall smartphone volumes in India have declined 11-12% year-on-year. The company is offering severance packages including three months' salary plus an additional month per year of service.

Samsung India's revenue stood at Rs 1.1 lakh crore in FY25, with home appliances contributing 11% to sales. Globally, Samsung's mobile business reported an operating loss in the June quarter. In response to market conditions, Samsung has also increased prices on some smartphone models by 5-10%, leading to a reported 40% drop in consumer footfall.