News agency Reuters reported in July that Samsung Electronics' global chip shortage could deepen and continue through 2028.
Samsung’s domestic electronics sales team has around 550-600 executives, excluding its larger smartphone sales organisation.
Smartphone business spared for nowSamsung’s smartphone division has not been affected by the current layoffs.
At the same time, higher raw material costs have weighed on its consumer electronics business.
Samsung India revenue rises 12% in FY25Samsung India reported revenue of about ₹1.1 trillion in FY25, up 12 per cent from the previous year, according to filings with the Registrar of Companies.
Samsung India has started cutting jobs in batches as its television and home appliance businesses face pressure from rising costs and weaker sales, The Economic Times reported.
Around 80-100 executives across the two businesses have so far been asked to leave. The cuts affect employees at various levels, including director-level officials and team leads at the headquarters, as well as branch and area managers, the news report said.
The move comes as memory chip prices have more than doubled, and softer smartphone demand and higher raw material costs have added to pressure on the company’s sales and margins. News agency Reuters reported in July that Samsung Electronics' global chip shortage could deepen and continue through 2028.
Up to 25% of sales and marketing staff may be affected
The job cuts are currently focused on Samsung’s television and home appliance operations, but the total number of affected employees could increase. An executive told The Economic Times that as many as 25 per cent of the sales and marketing workforce in the electronics business could be impacted. This includes off-roll employees hired through manpower agencies.
Samsung’s domestic electronics sales team has around 550-600 executives, excluding its larger smartphone sales organisation. The news report quoted an affected employee as saying that the company had been issuing termination letters in small batches over the past few days. Some employees were reportedly asked to leave without serving their notice periods. Samsung is offering three months’ salary as severance, along with an additional month’s pay for every year of service.
Smartphone business spared for now
Samsung’s smartphone division has not been affected by the current layoffs. It is the company’s biggest business in India, and a recovery in phone sales could significantly improve its overall financial performance in the country.
Smartphones account for about three-fourths of Samsung India’s revenue. However, smartphone sales in India have weakened, with industry estimates putting the decline at 11-12 per cent year-on-year, the news report said.
Samsung has also struggled to expand its presence in India’s high-value air conditioner market despite increasing its efforts this year. At the same time, higher raw material costs have weighed on its consumer electronics business. The company is also consolidating its branch network to lower expenses, with some offices being merged, the news report said.
Samsung India revenue rises 12% in FY25
Samsung India reported revenue of about ₹1.1 trillion in FY25, up 12 per cent from the previous year, according to filings with the Registrar of Companies. Home appliances contributed around 11 per cent of total sales, making them the company’s second-largest category after smartphones. Net profit rose 38 per cent to ₹11,287 crore in FY25.
