Layoffs begin in TV-home appliances division at Samsung India:100 laid off in cost-cutting; up to 25% of sales team affected

Facing a double whammy of rising costs and sluggish sales, electronics giant Samsung India has begun the process of job cuts in India. The company is laying off executives and employees from its television and home appliances business. According to sources and media reports, about 80 to 100 executives at various levels have been asked to leave the company so far. The affected employees include director-level officers and team leaders stationed at Samsung India headquarters, as well as branch and area managers. Pressure on Samsung India has increased due to 3 reasons Samsung Electronics is currently facing several challenges at both the global and domestic levels… Impact on up to 25% of sales and marketing staff possible This round of layoffs is currently limited to the television and home appliances vertical, but the number of affected employees may increase. An Economic Times report, citing an executive, stated that 25% of the sales and marketing workforce in the electronics business could be impacted. This potential reduction also includes off-roll employees hired through manpower agencies. Samsung’s domestic electronics sales division has about 550 to 600 executives, which does not include its large smartphone sales organization. According to the affected employees, the company has been issuing termination letters in small batches over the past few days. Some employees have been asked to leave immediately without completing their notice period. Samsung is offering them a severance package consisting of 3 months’ salary, along with an additional 1 month’s salary for every year of service. Smartphone division safe, but challenges there are no less Samsung has kept its largest business, the smartphone division, away from these layoffs for now. In India, approximately three-fourths, or 75%, of the company’s total revenue comes from the smartphone segment alone. Therefore, there are high expectations for an improvement in the company’s financial performance due to a recovery in phone sales. However, there is an overall trend of slowdown in the Indian smartphone market. According to industry estimates, smartphone sales have recorded a year-on-year decline of 11 to 12%. On the other hand, despite its efforts this year, Samsung is struggling to expand its reach in India’s high-value air conditioner (AC) market. To reduce expenses, the company is downsizing its branch network and merging several regional offices.