Samsung India laying off employees due to slowdown

Samsung Electronics is reportedly cutting over 200 executives across various functions in its Indian operations. According to the Economic Times, this decision follows a slowdown in the company’s business growth in India. Driven by weak consumer demand affecting sales, as reported by four unnamed senior industry insiders.

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Samsung Lay-offs Affect Multiple Divisions and Workforce

The lay-offs will impact divisions such as mobile phones, consumer electronics, home appliances, and support functions, accounting for about 9-10% of Samsung’s total managerial workforce, the report stated. Affected employees are being offered three months’ salary as per their employment contracts, along with a severance package equivalent to one month’s salary for each year of service, the report added.

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Senior Executives Seek Jobs Amid Lay-offs and Factory Strike

According to the report, the CEO of a rival home appliance company mentioned receiving “frantic calls” and resumes from Samsung India executives, including senior-level staff who are willing to work for significantly lower salaries. Meanwhile, workers at Samsung’s Chennai factory have been on an indefinite strike for the third consecutive day, disrupting the production of televisions, refrigerators, and washing machines just ahead of the festive season. The company is still operating the plant at approximately 50-80% capacity, as reported by Reuters.

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Samsung May Restructure Operations, Merging Divisions and Increasing Lay-offs

The report indicated that Samsung is considering restructuring its operations, potentially merging business divisions such as televisions and home appliances. This could lead to further lay-offs, according to senior executives. The goal of the restructuring is to reduce management layers, manpower, overheads, and inefficiencies. A final decision on the matter is expected to be made after Diwali, the report added.

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