Samsung India has reportedly laid off approximately 80 to 100 executives in its television and home appliance sectors. The workforce reduction, which has been occurring in batches over recent days, includes director-level executives, team leads, branch managers, and area managers.
While Samsung has not yet issued an official statement, sources indicate that a larger restructuring may be underway. The company is expected to cut a significantly greater number of employees, potentially impacting up to 25% of its India workforce across sales, marketing, and electronics businesses, encompassing both direct and off-roll staff. This could translate to around 138 to 150 additional departures in the coming weeks, beyond the initial wave.
Reasons Behind the Samsung India Layoffs
The South Korean electronics giant is reportedly undergoing this restructuring due to mounting financial and business pressures. Several factors contribute to this challenging environment:
- Higher Chip Prices: Samsung utilizes memory components across a wide array of its electronics products, and increased chip prices have significantly elevated production costs.
- Weakening Rupee: The Indian rupee has depreciated by nearly 10% through FY26, making imported components and finished products more expensive for Samsung.
- Smartphone Market Slowdown: India's smartphone shipments have seen an estimated year-on-year decline of 11-12%, directly impacting Samsung's largest business segment in the country.
- Rising Raw Material Costs: Consumer electronics such as TVs, refrigerators, washing machines, and air conditioners are facing increased raw material costs, squeezing profitability.
Some affected employees were reportedly asked to leave immediately without serving their notice period.
Severance Package Details
Reports suggest that Samsung is offering a severance package comprising three months' salary as a base payment. Additionally, employees are said to receive an extra month's salary for each completed year of service. For instance, an employee with five years at Samsung would reportedly receive a total of eight months' salary as part of their severance.
We have reached out to Samsung for confirmation regarding its restructuring plans and will provide updates as more information becomes available.