Samsung India has started reducing its workforce in the television and home appliance businesses as rising costs and weaker demand pressure its operations. The company has reportedly asked around 80-100 executives to leave in batches. The affected employees include director-level officials, team leaders, branch managers and area managers. Some employees have reportedly received termination letters without serving their full notice periods. Samsung has offered affected staff three months’ salary along with an additional month’s pay for every year of service as part of the severance package. The company is taking these steps as part of a wider restructuring plan aimed at reducing costs and streamlining its operations in India.
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Samsung Rising Memory Chip Prices Add Pressure
Higher memory chip prices have increased pressure on Samsung’s electronics business. According to the report, memory chip prices have more than doubled, while the Indian rupee has declined by nearly 10% during FY26. Higher raw material costs have added further pressure on the company’s margins. At the same time, India’s smartphone market has weakened, with industry estimates indicating an 11-12% year-on-year decline in volumes. Samsung depends heavily on its smartphone business, which contributes nearly three-fourths of its revenue in India. The company has also faced challenges in expanding its air-conditioner business despite making efforts to strengthen its position in the segment.
The current layoffs mainly affect Samsung’s television and home appliance operations, but the company could expand the workforce reduction. An industry executive cited in the report said as many as 25% of Samsung’s electronics sales and marketing workforce could face an impact. The figure includes both company employees and off-roll workers hired through manpower agencies. Samsung’s domestic electronics sales team has around 550-600 executives, excluding its much larger smartphone sales workforce. The company has also begun consolidating its branch network to reduce duplicate roles and operating expenses. Several offices are reportedly being merged, including locations in Ranchi and Patna, as well as Delhi and Gurgaon.
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Smartphone Business Remains Protected For Now
Samsung has kept its smartphone workforce outside the current round of layoffs because mobile phones remain its strongest business in India. The company expects demand to improve during the upcoming Diwali festive season and hopes stronger sales will support its operations. Samsung’s premium Galaxy Fold and Flip smartphones have received a positive response, although phones priced above Rs 1 lakh account for only a small share of India’s overall smartphone volumes. Meanwhile, Samsung’s market position has weakened. Counterpoint Research data cited in the report showed Samsung slipping to third place in India’s smartphone market during April-June. Vivo ranked first, while Oppo moved into second position during the period.
Samsung India remains a major and profitable business despite the latest workforce reductions. The company reported revenue of around Rs 1.1 lakh crore in FY25, while its net profit increased 38% to Rs 11,287 crore. Home appliances contributed about 11% of the company’s Indian sales. However, Samsung could announce further workforce rationalisation after Diwali, particularly in its television and home appliance businesses. The company has also postponed plans to merge its home appliance and television sales teams until the December quarter. Samsung has raised prices on some smartphone models by 5-10%, while retailers have reported weaker customer footfall following repeated price increases. The company now faces the challenge of controlling costs while protecting growth in India’s competitive electronics market.
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