Samsung India begins job cuts

New Delhi: Samsung India Electronics, a leading player in the mobile phone and consumer appliances space, has laid off 8-10 mid-to-senior-level employees and plans to let go of another 40-50 staff in the coming weeks as part of a cost-rationalisation exercise amid rising input costs and muted consumer demand, industry sources said.

The layoffs are taking place in the Consumer Electronics (CE) division of Samsung India, which houses its televisions, digital appliances, and home electronics businesses, they said. In the first phase, the company has laid off around 8-10 employees from the CE division, ranging from general manager, team lead and branch/area manager to even director level. In the second round, Samsung Electronics India may lay off another 40 to 50 people, industry sources told PTI.

The move is aimed at trimming the workforce and driving efficiency as Samsung India faces stiff competition in the CE business from rival Korean and Chinese players, with competitive intensity running high in the segment. The team has around 500 to 600 executives.

A query sent to Samsung India over the development remained unanswered till the time of filing of the story.

Samsung is also merging a few of its branch offices across the country, which will lead to some redundancies, they added.

It has recently merged its Patna and Ranchi branches. A similar exercise is also being taken up for the Delhi-Gurugram and Punjab-Chandigarh branches, among others that are likely to be merged, they added. Samsung, which had a revenue of Rs 1.14 lakh crore in FY25, garners 10 to 12 per cent from the CE business, and a majority, around 70 per cent, comes from its handphones business.

ABOUT THE AUTHOR

The Hans India