Over 200 executives will be let go by Samsung Electronics from its Indian operations, according to The Economic Times.
The company’s main smartphone market share has been lost, customer demand has decreased, and business growth has slowed, all of which have contributed to the layoffs. Four top industry leaders quoted in the study claim that cutting expenses and increasing profitability are additional goals of the layoffs.
Numerous departments, including those that deal with mobile phones, consumer electronics, home appliances, and support services, will be impacted by the job layoffs. Approximately 9–10% of Samsung’s current managerial personnel in India—roughly 2,000 executives—is represented by this reduction.
The layoffs are taking place while Samsung India is going through a difficult time. The company’s Chennai facility is currently experiencing a walkout by workers, which is impacting the manufacturing of washing machines, refrigerators, and televisions.
As of today, the third day of the strike, output levels are said to be between 50 and 80 percent of the factory’s capacity. The fact that this interruption occurs so close to the important holiday season puts additional strain on the business.
Samsung is thinking about revamping its business in India in addition to layoffs. This can entail the combination of some corporate segments, like television and home appliances, which might result in an increase in employment losses. Restructuring is intended to increase efficiency by reducing staff, overhead, and layers of management. It is anticipated that a final decision on this would be made following the Diwali season.
In addition, the corporation has stopped hiring and has no intention of replacing departing executives. Samsung might further reduce its employment by lowering the number of off-roll workers.
As part of their employment contract, Samsung is providing a severance payment and three months’ income to workers who are being laid off. For each year of service, a month’s income is included in the severance package.
According to a business expert with knowledge of the matter, pay at Samsung India have increased significantly in recent years due to the company’s high development phase, especially for junior and mid-level staff.