Samsung India Electronics has started trimming its workforce in phases, with sales and profit margins coming under pressure in its core smartphone business after memory chip prices more than doubled. According to multiple industry executives, around 80 to 100 executives from the television and home appliance divisions have already been asked to leave the company.
Senior Roles Among Those Affected
The layoffs are not limited to junior staff. Director level officials and team leads at the company’s headquarters have been let go, along with branch and area managers stationed at operating branches across the country. Sources say up to 25 percent of the sales and marketing workforce in the electronics business could eventually be affected, a number that also includes offroll employees hired through manpower agencies.
Smartphone Division Spared For Now
While other divisions are bearing the brunt of these cuts, Samsung’s smartphone team remains untouched for the time being. Mobile phones continue to be the company’s largest business in India, and executives believe a sales rebound in this segment could significantly improve the company’s overall financial performance in the country.
How Are The Layoffs Playing Out?
An affected employee told reporters that Samsung has been issuing termination letters in small batches almost daily over the past few days, asking staff to leave without serving out their notice periods. As compensation, the company is offering three months of salary along with an additional month’s pay for every year of service completed.
Rupee Depreciation And Falling Sales Add Pressure
Samsung’s troubles have been compounded further by the rupee’s nearly 10 percent decline through the last financial year, making its phones and electronic products more expensive for Indian buyers. This has directly impacted sales growth, with smartphone volumes in the country dropping between 11 and 12 percent year on year, according to industry estimates.
Revenue Still Grew, But Margins Are Squeezed
Interestingly, the layoffs come even as Samsung India’s overall financials showed growth. The company’s total revenue stood at Rs 1.1 lakh crore in the last financial year, marking a 12 percent year on year increase, while its net profit rose 38 percent to Rs 11,287 crore. However, rising raw material costs, a shrinking share in the premium smartphone segment, and global pressure on its mobile and consumer electronics businesses appear to have pushed the company toward cost cutting measures despite the healthy topline numbers.
More Cuts Likely After Diwali
Industry sources indicate that a second round of layoffs could follow after the festive season, particularly in the home appliance and television businesses, even as Samsung continues consolidating branch offices across states to further reduce operational costs.
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Khushi Patel is a Senior Sub Editor at NewsX, covering automotive, technology, Lifestyle, entertainment, and mainstream news. She previously worked as a Copy Editor at Times Network and has written automotive editorial content, including comparison pieces, for TimesDrive.
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