Samsung India Layoffs: Up to 100 Executives Asked to Leave Amid Rising Costs and Weak Demand

Samsung India has reportedly started reducing its workforce in the television and home appliance businesses, with around 80 to 100 executives asked to leave amid rising costs, weaker consumer demand and an ongoing restructuring of its India operations.

The job cuts are reportedly being carried out in batches and affect employees across multiple levels, including directors, team leaders, branch managers and area managers.

The restructuring comes as Samsung faces pressure from sharply rising memory chip prices, higher raw material costs and the weakening Indian rupee. A slowdown in smartphone demand has also added pressure on the company's sales and profit margins.

The current job cuts are mainly focused on Samsung's television and home appliance divisions. Industry estimates suggest that the restructuring could eventually affect a larger share of the sales and marketing workforce in the company's consumer electronics business.

Samsung's domestic electronics sales operations reportedly employ around 550 to 600 executives, excluding its significantly larger smartphone sales network. Some employees have reportedly been asked to leave in small batches, with severance packages including three months' salary and additional compensation based on years of service.

Rising memory chip costs have emerged as one of the major challenges for Samsung's India business. At the same time, the depreciation of the rupee and higher input costs have increased pressure on the pricing of smartphones and consumer electronics products.

The broader Indian smartphone market has also faced weaker demand, with industry estimates pointing to an 11 to 12 per cent year-on-year decline in smartphone volumes.

Despite the current restructuring, Samsung's smartphone workforce has reportedly not been included in this round of job cuts. Smartphones remain the company's largest business in India, accounting for a significant share of its overall revenue.

Samsung is expecting the upcoming Diwali season to support demand for smartphones and other electronics products. The company is also banking on continued interest in its premium Galaxy Fold and Flip devices.

However, Samsung has faced increasing competition in India's smartphone market. The company reportedly slipped from second to third position during the April-June quarter, as competition from Chinese smartphone brands intensified.

The company has also been facing challenges in expanding its presence in the high-value air-conditioner segment, while higher raw material costs have affected margins in the broader home appliance and consumer electronics businesses.

Samsung India's overall financial performance remains substantial despite pressure in specific divisions. The company's revenue reportedly reached Rs 1.1 lakh crore in FY25, marking growth over the previous financial year, while net profit also increased.

The latest workforce reduction appears to be part of a broader cost-control and restructuring strategy rather than a sign of a collapse in Samsung's India operations.

Samsung is also consolidating its physical branch network across India, with several offices and regional operations being merged. The restructuring has reportedly resulted in certain positions becoming redundant.

Plans to combine Samsung's home appliance and television sales teams have also been considered as part of efforts to reduce management layers and operating costs, although the proposed merger has reportedly been postponed.

Another round of workforce rationalisation could reportedly take place after Diwali, particularly in the television and home appliance businesses, depending on sales performance and market conditions.

Samsung has also increased prices of some smartphone models amid rising component costs. Higher prices have affected consumer demand, with mobile retailers reporting lower customer footfall following repeated price increases.

While Samsung's semiconductor operations have benefited from strong global demand for memory chips, rising chip prices have increased cost pressures for its consumer electronics and smartphone businesses.