Samsung Electronics plans to lay off more than 200 executives across its Indian operations.
This decision, affecting about 9-10% of the managerial workforce, comes in response to slowing business growth, particularly in the smartphone sector, and increased competition.
The layoffs will impact various departments including mobile phones, consumer electronics, and home appliances. The company is also freezing hiring and halting replacements for vacant positions. Affected employees will receive severance packages consisting of three months’ salary plus one month’s salary for each year of service.
Samsung’s decision is part of a broader effort to manage rising costs and improve profitability, with pressures from its Seoul headquarters. The company is considering restructuring its Indian operations, potentially merging divisions to streamline management and reduce inefficiencies.
In the smartphone market, Samsung has lost its volume leadership to Xiaomi, with a slight decrease in market share. The company is also facing challenges from a strike at its Chennai manufacturing plant, which has disrupted production amid the festive season.
Samsung is expected to finalize decisions on further restructuring after Diwali.
