New Delhi: Samsung India has begun cutting jobs in batches as rising costs, weaker sales and mounting pressure on margins affect its television and home appliance businesses, according to a report by The Economic Times. Around 80-100 executives across the two divisions have reportedly been asked to leave so far.
The layoffs are spread across several levels, including director-level officials, headquarters-based team leaders, branch managers and area managers. The company is reportedly issuing termination letters in small batches, with some employees asked to leave without serving their notice periods. Samsung is said to be offering three months’ salary as severance, along with an additional month’s pay for every year of service.
The job cuts could widen further. An executive cited in the report said that up to 25% of the sales and marketing workforce in Samsung’s electronics business could eventually be affected, including off-roll employees hired through manpower agencies. Samsung’s domestic electronics sales team has around 550-600 executives, excluding its much larger smartphone sales organisation.
The restructuring comes amid a sharp rise in memory chip prices, higher raw material costs and softer smartphone demand. Reuters had reported in July that the global chip shortage affecting Samsung could deepen and continue through 2028.
For now, Samsung’s smartphone division has been spared from the layoffs. Smartphones contribute roughly three-fourths of Samsung India’s revenue, although industry estimates suggest smartphone sales in the country have declined by around 11-12% YoY.
Samsung is also attempting to reduce operating expenses by consolidating its branch network and merging some offices. Its air conditioner business has struggled to gain greater traction in India’s premium segment despite increased efforts this year.
Despite these challenges, Samsung India reported strong financial growth in FY25. Its revenue rose 12 % to around ₹1.1 trillion, while net profit increased 38% to ₹11,287 crore. Home appliances accounted for about 11% of total sales, making the segment Samsung India’s second-largest category after smartphones.
