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Samsung Electronics is set to lay off more than 200 executives across various functions in its Indian operations, according to reports. The decision comes in response to a slowdown in business growth and declining consumer demand, which have adversely affected the company’s sales performance in the region.
Impact on Workforce
The layoffs will impact roles in mobile phones, consumer electronics, home appliances, and support functions, representing approximately 9-10% of Samsung India’s total managerial workforce. Affected employees will receive severance packages, including three months’ salary and an additional one-month salary for each year of service, as stipulated in their contracts.
The Economic Times, citing anonymous industry sources, reported that some of the laid-off senior executives have already started seeking new opportunities. A rival home appliance company’s CEO mentioned receiving “frantic calls” and resumes from Samsung India executives, with some willing to accept lower salaries.
Production Strikes
The workforce reduction comes at a challenging time for Samsung India, as workers at its Chennai factory have been on an indefinite strike for three days. The strike has disrupted the production of televisions, refrigerators, and washing machines, particularly critical ahead of the festive season. Despite efforts to maintain operations, production levels are reported to be running at just 50-80% of capacity.
Potential Restructuring
In addition to the layoffs, Samsung India is reportedly considering a significant restructuring of its operations. This may involve merging certain business divisions, such as television and home appliances, to streamline management layers, reduce manpower, and cut overhead costs. The company’s final decision on these changes is expected to be made after Diwali.
Sources By Agencies
