Samsung Electronics is reportedly laying off over 200 executives in the Indian business across functions
Samsung Electronics is reportedly laying off over 200 executives in the Indian business across functions. This comes as the company’s business growth in the country is slowing down due to poor consumer demand impacting its sales.
Read More: What will happen to Club Vistara points, vouchers after Air India merger? MC Explains
Samsung is cutting jobs in its Indian unit, following a disappointing sales performance that has led to a significant decline in the company’s value and volume market share —these have hit the lowest levels in a decade—Moneycontrol.com reported quoting sources.
Sources told the news outlet that the company may lay off employees across functions such as sales, marketing and operations. One person familiar with the matter said the job losses could be in “high single digits”. Others cited higher numbers.
Read More: Petrol, Diesel Fresh Prices Announced: Check Rates In Your City On September 11
“The numbers could go as high as 20 per cent of the Indian workforce,” the report claimed.
The report further stated quoting another source that a restructuring is currently ongoing across smartphone, consumer electronics and home appliances business which would result in exits of some key executives from the company.
He said that Samsung has currently stopped fresh hiring and roles where executives have voluntarily exited are not getting hired.
Read More: Gold Rates Today (11-09-24): Check Top City Wise Gold Prices In Delhi, Mumbai, Kolkata, Chennai
The employees being laid off are being offered three months of salary as per their employment contract and a severance package of one-month salary for every year of service, the report added.
This comes as workers in Samsung’s Chennai factory are on an indefinite strike for the third day which has impacted production of televisions, refrigerators and washing machines ahead of the festive season. The company is still trying to run the plant with production at around 50-80 per cent of its capacity, news agency Reuters reported.
Samsung India to completely restructure?
The report claimed that Samsung is planning to restructure its operations which may include the merger of certain business divisions like the television and home appliances. This may increase the number of people laid off, the executives said as per the report and the move aims to cut management layers, manpower, and overheads and reduce inefficiencies. The final decision will be taken after Diwali regarding the same, the report added.
