Key takeaways
- Samsung India is cutting jobs across television and home appliance operations.
- Rising costs and weaker demand are driving workforce restructuring efforts.
- FY25 revenue rose 12%, while net profit increased 38%.
Samsung India layoffs have begun across the company’s television and home appliance operations, with around 80 to 100 employees reportedly asked to leave. The cuts come as the company restructures its consumer electronics business amid rising costs and weaker demand in India.
Samsung India layoffs target TV and home appliance operations
The latest Samsung India layoffs are focused on sales and marketing roles within the company’s television and home appliance businesses.The exercise could eventually affect up to 25% of sales and marketing staff within the company’s electronics business. Both direct employees and off-roll personnel hired through staffing agencies are included in the restructuring.
Samsung’s domestic electronics sales team has around 550 to 600 executives. This is separate from its much larger smartphone sales organisation. Termination letters have been issued in batches in recent days, with some employees asked to leave without completing their notice periods.
The severance package includes 3 months’ salary, along with an additional month’s salary for every completed year of service.
Samsung is also consolidating some branch operations. The changes include combining Ranchi with Patna, Delhi with Gurgaon, and Punjab with Chandigarh. Some roles have become redundant as a result.
The company had planned to combine its television and home appliance sales teams to simplify management structures and lower costs. That integration has now been postponed until the December quarter.
Higher costs and softer demand add pressure
Samsung India restructuring comes as the company’s consumer electronics operations face higher input costs and weaker market conditions.India’s smartphone market has also weakened. Industry estimates show smartphone volumes declined by 11% to 12% year on year. Samsung has also faced challenges in expanding its premium air conditioner business, while higher raw material costs have added pressure on margins.
Despite these challenges, Samsung India reported stronger financial results in FY25. Revenue increased 12% year on year to ₹1.1 lakh crore. Net profit rose 38% to ₹11,287 crore.
Home appliances accounted for around 11% of total sales, while smartphones remained the company’s largest revenue-generating category.
The smartphone workforce has not been included in the latest job cuts. Samsung expects smartphone demand to improve during the festive season, while premium models such as Galaxy Fold and Galaxy Flip have received positive market response.
However, competition remains strong. Samsung moved from second to third place in India’s smartphone market during the April to June quarter. Vivo ranked first, while Oppo took second place.
Further workforce rationalisation could follow after Diwali, mainly in television and home appliance operations. No immediate cuts are planned for the mobile phone division. Samsung has also raised prices on some smartphone models by 5% to 10%.
The latest restructuring shows how changing costs, demand, competition, and business structures are affecting specific parts of Samsung India’s operations, even as the company continues to report higher revenue and profit.
