Samsung India cuts jobs as cost pressures mount, nearly 100 executives asked to leave

Samsung India has asked 80-100 executives in its television and home appliance businesses to leave in batches. The move reflects mounting cost pressures, weak demand and a wider restructuring across its India operations.

In Short

• Samsung India cuts 80-100 executives in TV and home appliance units
• Smartphone team safe as firm expects festive season sales boost
• Further cuts possible post-Diwali, focus remains on cost control

Samsung India has started trimming its workforce in its television and home appliance businesses as a combination of rising costs, weaker consumer demand and a broader restructuring puts pressure on the electronics giant's India operations, reported The Economic Times (ET).

The company has so far asked 80-100 executives to leave, according to the report, which cited multiple industry executives.

The layoffs are being carried out in batches and affect employees across different levels, including director-level officials and team leads at the headquarters, as well as branch and area managers.

The move comes at a challenging time for Samsung's India business. Memory chip prices have more than doubled, while the Indian rupee's decline, weaker smartphone volumes and higher raw material costs have added to pressure on sales and margins.

UP TO 25% OF SALES, MARKETING STAFF COULD BE HIT

The job cuts are currently focused on Samsung's television and home appliance businesses. However, the scale could be larger.

One industry executive cited by ET said up to 25% of Samsung's sales and marketing workforce in its electronics business could be affected. This includes employees working directly for the company as well as off-roll workers hired through manpower agencies.

Samsung's domestic electronics sales team has around 550-600 executives, apart from its much larger smartphone sales organisation.

An affected employee told ET that termination letters had been issued daily over the past few days in small batches, with some employees being asked to leave without serving their notice periods.

Samsung is offering three months' salary along with an additional month's pay for every year of service as severance, according to the report.

WHY IS SAMSUNG CUTTING JOBS?

The pressure on Samsung India is coming from several directions.

The company has been dealing with sharply higher memory chip prices, while the rupee's nearly 10% decline through FY26 has made smartphones and other electronic products more expensive.

That has come at a time when India's smartphone market itself is weakening. Industry estimates cited in the report put the decline in smartphone volumes at 11–12% year-on-year.

For Samsung, the smartphone business is particularly important because mobile phones account for around three-fourths of its revenue in India.

The company has also struggled to expand its presence in the high-value air-conditioner segment despite making aggressive efforts this year. Higher raw material prices have added further pressure on its consumer electronics business.

SMARTPHONE TEAM SAFE FOR NOW

Samsung's smartphone workforce has been kept out of the current round of layoffs, according to the ET report.

The reason is straightforward: smartphones remain Samsung's biggest business in India, and the company expects demand to improve during the upcoming Diwali season.

That could provide some relief to the wider India business if sales pick up during the festive period.

Samsung's premium Galaxy Fold and Flip smartphones have also received a good response, although the overall market for smartphones priced above Rs 1 lakh accounts for only around 4% of volumes.

There are, however, signs of pressure in Samsung's broader smartphone business. According to Counterpoint Research data cited by ET, Samsung slipped to third place from second in India's smartphone market during April-June. Vivo led the market, while Oppo was in second place.

The job cuts come despite Samsung India having a sizeable business in the country.

The company's total revenue stood at Rs 1.1 lakh crore in FY25, up 12% from the previous year, according to its latest filings with the Registrar of Companies.

Its net profit rose 38% to Rs 11,287 crore during the year.

Home appliances contributed around 11% of Samsung India's sales, making them the company's second-largest category after smartphones.

The latest job cuts therefore reflect the pressure on specific businesses and the company's effort to control costs rather than a collapse in its overall India operations.

Samsung is also restructuring its physical operations in India.

The company is consolidating its branch network, with several offices being merged. The report cited the examples of Ranchi and Patna, Delhi and Gurgaon, and Punjab and Chandigarh being combined.

The consolidation is resulting in some positions becoming redundant, according to industry executives.

Samsung had also proposed merging its home appliance and television sales teams as part of an effort to reduce costs and management layers. That merger has now been postponed to the December quarter, ET reported.

MORE JOB CUTS AFTER DIWALI?

The current round of layoffs may not be the last.

One industry executive cited in the ET report said another round of manpower rationalisation could take place after Diwali, particularly in the home appliance and television businesses.

There are no immediate plans to cut jobs in the mobile phone business, the executive said, as Samsung considers smartphones its "bread and butter" and is banking on a festive-season recovery. However, the mobile business could be evaluated later depending on how sales perform.

At the same time, Samsung is having to navigate another problem: higher prices.

The company has raised prices of some smartphone models by 5-10%, according to the report. The All India Mobile Retailers' Association has said consumer footfall has fallen sharply by 40% amid repeated price increases.

Globally too, Samsung's mobile business swung into an operating loss in the June quarter, while its consumer electronics businesses remained under pressure. The semiconductor business, however, benefited from record demand for memory chips.

- Ends