Samsung India has joined the rest of the many tech companies that have begun layoffs to offset profit losses. It has started laying off employees in batches across its television and home appliance divisions, as the company grapples with rising costs and softer sales.
Around 80-100 executives let go so far
An Economic Times report says that roughly 80-100 executives across the two businesses have been asked to leave in this first round. The cuts span from director-level officials and team leads at the company's headquarters to branch and area managers in the field.
Cost pressures behind the move
The layoffs come as memory chip prices have more than doubled, compounding the impact of weaker smartphone demand and rising raw material costs on Samsung's overall sales and margins. Reuters had separately reported in July that a global chip shortage at Samsung Electronics could deepen and persist through 2028, adding to the broader pressure on the company's finances.
Sales and marketing staff could be next
While the cuts are currently concentrated in the TV and home appliance units, the total number of affected employees may grow. An executive reportedly said that as much as 25 percent of the sales and marketing workforce in the electronics business could ultimately be impacted, a category that includes off-roll staff hired through manpower agencies. Samsung's domestic electronics sales team numbers around 550-600 executives, not counting its considerably larger smartphone sales organisation.
According to the report, termination letters have been issued in small batches over recent days, with some employees let go without being made to serve their notice periods. Samsung is reportedly offering three months' salary as severance, plus an additional month's pay for every year of service.
Smartphone business unaffected
Samsung's smartphone division, its largest business in India, has not been touched by the current round of cuts. Smartphones account for roughly three-fourths of Samsung India's revenue, though industry estimates put the year-on-year decline in smartphone sales at 11-12 percent. A turnaround in phone sales could meaningfully lift the company's overall financial performance in the country.
The company has also struggled to gain ground in India's high-value air conditioner segment despite stepping up efforts this year, even as elevated raw material costs continue to weigh on its consumer electronics business. Samsung is separately consolidating its branch network to cut costs, including merging some offices, per the report.
Revenue and profit still climbed in FY25
Despite the current cost pressures, Samsung India's revenue rose 12 percent to about Rs. 1.1 trillion in FY25, according to filings with the Registrar of Companies.
