Our Bureau
Gurgaon
Samsung India has asked around 80–100 executives to leave the company, primarily across its television and home-appliance businesses, as rising component costs, weaker demand and pressure on margins trigger a wider restructuring of its operations. The job cuts are reportedly being carried out in phases and affect employees across several levels, including directors, team leaders and regional managers.
The move comes as the electronics major faces a sharp increase in memory-chip prices, which have more than doubled, putting pressure on the profitability of its consumer-electronics operations. At the same time, weaker sales and higher operating expenses have added to the company’s cost pressures.
The initial workforce reduction is focused on Samsung India’s television and home-appliance businesses. The company’s smartphone division has not been affected by the current round of layoffs, according to reports. However, further job reductions could follow, with industry sources indicating that as much as 25% of the electronics sales and marketing workforce could potentially be affected in a subsequent phase.
The restructuring highlights the growing pressure on consumer-electronics companies as higher input costs collide with softer demand. Samsung is seeking to streamline its operations and protect margins at a time when rising costs are making it more difficult to maintain profitability.
The developments also come as Samsung marks 30 years of operations in India, with the country increasingly positioned as an important manufacturing, technology and innovation hub for the company. The contrast between its long-term commitment to India and the immediate workforce restructuring underscores the challenges facing large electronics businesses amid changing market conditions.