Samsung India has begun cutting jobs across its television and home appliance businesses as the electronics giant faces rising costs, weaker consumer demand and pressure on profit margins.
Around 80 to 100 executives have reportedly been asked to leave the company, with the reductions being carried out in phases. Those affected include director-level executives, team leaders, branch managers and area managers.
Samsung’s consumer electronics operations have an estimated 550 to 600 sales and marketing executives, excluding its much larger smartphone sales organization. Reports suggest as much as 25 per cent of the sales and marketing workforce could eventually be affected, including both direct employees and workers hired through staffing agencies.
Employees being let go are reportedly being offered three months of salary, plus an additional month of pay for every year they have worked at the company.
Why is Samsung cutting jobs?
Samsung’s Indian operations are facing several cost and demand pressures.
Memory chip prices have more than doubled, while a weaker Indian rupee has increased costs. At the same time, smartphone sales have slowed, putting additional pressure on the company’s margins.
Industry estimates cited in the report indicate that smartphone shipment volumes in India have declined by approximately 11 to 12 per cent year over year. That is particularly significant for Samsung because mobile phones account for roughly three-quarters of its revenue in India.
Samsung has also raised prices on some smartphone models by about five to 10 per cent. Retailers have reported declining customer traffic following repeated price increases, raising concerns that higher prices could further weaken demand.
The company’s smartphone division, however, is not included in the current round of job cuts.
Samsung is reportedly hoping for stronger smartphone sales during India’s festive season, particularly around Diwali. The mobile division could be reviewed later depending on sales performance, while another round of workforce reductions in the television and home appliance businesses is also possible after Diwali.
Samsung restructures India operations
The layoffs are part of a broader restructuring aimed at streamlining Samsung’s Indian operations and reducing costs.
The company is reportedly consolidating several regional offices, including its Ranchi and Patna operations as well as its Delhi and Gurgaon offices.
Samsung has also considered combining its television and home appliance sales teams to eliminate management layers and lower overhead costs. That restructuring has reportedly been postponed until the December quarter.
Despite the layoffs, the company’s latest financial results indicate continued growth in India.
Samsung India reported revenue of approximately Rs 1.1 lakh crore in fiscal 2025, representing a 12 per cent increase from the previous year. Net profit climbed 38 per cent to Rs 11,287 crore, according to figures cited from the company’s latest filings.
Home appliances account for approximately 11 per cent of Samsung India’s sales, making the category its second-largest business after smartphones. The company is now seeking to make its sales and distribution operations leaner as it navigates higher costs and softer demand.
