Samsung India started cutting jobs in its TV and home appliance business. According to the latest reports, the company asked around 80 to 100 executives to leave and, most importantly, none of these laid-off employees are juniors. This time, the job cuts hit executive-level employees, including Director-level executives, team leads, and even branch and area managers based out of Samsung's headquarters.
The cuts are reportedly part of rising costs, weaker consumer demand, and a broader restructuring that have put critical pressure on the tech giant’s India operations. Memory chip prices have more than doubled. A weaker rupee and higher raw material costs are also adding pressure.
The job cuts may not stop here. At this point, the job cuts are restricted to Samsung India’s TV and Home Appliances section, but they could be larger. Sources reported that nearly 25% of Samsung's sales and marketing workforce in its electronics business could be affected.
The company has around 550 to 600 people in these roles, apart from its much larger smartphone sales team. Samsung is also closing some regional offices to cut costs. More job cuts could come after Diwali, mainly in the TV and appliance units.
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Samsung’s smartphone team has not been hit by the current cuts. Phones account for about three-fourths of Samsung India’s revenue. This makes the mobile business much more important than TVs and home appliances.
Samsung is also hoping for stronger phone sales during the Diwali season, though the smartphone market has seen a drop in shipments. Samsung has raised prices on some phones by around 5% to 10% as costs rise.
TVs and home appliances face a tougher situation. These products make up a much smaller part of Samsung India’s sales. The company is now looking for ways to cut costs and improve sales in these areas.