Samsung is mulling to lay off employees in India after sales dip and plunging value market share, said reports.
Sales have plunged due to poor consumer demand because of which jobs will be cut in teams handling mobile phones, consumer electronics and home appliances, according to The Economic Times.
Around 200 employees are expected to be affected and this would include nearly 10 per cent of the managerial positions. The laid off staff will get three months salary and a severance package of one-month salary for every year every year they worked with the tech giant.
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Sources cited by Moneycontrol believe that employees in sales, marketing and operations could be laid off. This is reportedly part of a rejig in the company to improve organisational performance and increase market competitiveness, with key executives being reshuffled.
Samsung, which took back its numero uno position from Xiaomi in smartphone sales in FY 2023, slipped down in the first quarter of FY 2025 after its shipments slumped 15.4 per cent and volume market share tanked 12.9 per cent.
Besides Chinese smartphones, Apple is also eating into Samsung's premium customers. Despite high prices, iPhones sales in India have exponentially soared from around $1.5 billion in 2020-21 to $7.5 billion in 2023-24.
The layoffs come after the production of Samsung's consumer durable products at its Chennai plant came to a grinding halt due to a workers' strike on September 9. About 900 factory workers, which makes up around 50 per cent of the total workforce went on strike on Monday seeking a salary hike and improvement in working conditions.
Samsung's Chennai factory, where television, refrigerator and washing machine are produced, has about 1,800 workers.
Regarding the workers' demands, Samsung India spokesperson told PTI "At Samsung India, the welfare of our employees is our top priority. We actively engage with our workers to address any grievances they may have and comply with all laws and regulations. We will also ensure that there is no disruption to our consumers."
