Samsung
Samsung India layoffs begin: 80-100 executives asked to leave
Tech major Samsung India Electronics has started cutting jobs in batches as sales and margins come under pressure in its mainstay smartphone business, following a more than twofold increase in memory chip prices, The Economic Times reported.
So far, around 80-100 executives in the television and home appliance businesses have been asked to leave, according to multiple industry executives cited by the newspaper.
The layoffs reportedly include director-level officials and team leads at the company’s headquarters, as well as branch and area managers at its operating branches.
“Up to 25% of its sales and marketing workforce in the electronics business — including off-roll employees hired through manpower agencies — could be affected,” one of the executives told The Economic Times.
According to the report, the absence of a local semiconductor business is also hurting the performance of Samsung’s India unit and raising concerns over its manpower requirements.
The company’s smartphone team, however, has reportedly remained insulated from the current round of job cuts.
The domestic electronics sales team comprises around 550-600 executives, apart from a much larger sales organisation dedicated to smartphones, the report said.
An affected employee told The Economic Times that Samsung has been issuing termination letters daily in small batches over the past few days and asking employees to leave without serving their notice periods.
The company is offering three months’ salary, along with an additional month’s pay for every year of service, as part of the severance package, the report added.
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