Layoffs begin in Samsung India’s TV and home appliances division: 100 employees let go as part of cost-cutting; up to 25% of the sales and marketing team could also be affected.

Facing the dual blow of rising costs and sluggish sales, electronics giant Samsung India has initiated a job-cut process in the country. The company is laying off executives and employees from its television and home appliances business.

According to sources and media reports, approximately 80 to 100 executives across various levels have been asked to leave the company so far. The affected employees include director-level executives and team leaders based at Samsung India’s headquarters, as well as branch and area managers.

Pressure on Samsung India has mounted due to three factors:

Samsung Electronics is currently facing several challenges on both global and domestic fronts…

Surge in memory chip prices: Prices of memory chips in the global market have more than doubled, driving up production costs for companies.

Sluggish smartphone demand: Weak demand in the smartphone market and rising raw material costs have put pressure on the company’s margins and overall sales.

Risk of global chip shortage: According to a Reuters report, the global chip shortage crisis facing Samsung Electronics could deepen and is expected to persist until 2028.

Impact on up to 25% of sales and marketing staff likely:

This round of layoffs is currently limited to the television and home appliances vertical, but the number of affected employees could rise. An *Economic Times* report, citing an executive, indicates that up to 25% of the sales and marketing workforce in the electronics business could be affected.

This potential reduction also includes off-roll employees hired through manpower agencies. Samsung’s consumer electronics sales division comprises approximately 550 to 600 executives, excluding its large smartphone sales organization.

According to affected employees, the company has been issuing termination letters in small batches over the past few days. Some employees have been asked to leave immediately without completing their notice period. Samsung is offering them a severance package consisting of three months’ salary plus one month’s additional pay for every year of service.

Smartphone division safe, but challenges persist there too

Samsung has currently kept its largest business—the smartphone division—out of these layoffs. In India, the smartphone segment alone accounts for nearly three-quarters (75%) of the company’s total revenue; consequently, there are high hopes that a recovery in phone sales will improve the company’s financial performance.

However, an overall slowdown persists in the Indian smartphone market. Industry estimates indicate an 11–12% year-on-year decline in smartphone sales.

Meanwhile, despite its efforts, Samsung is struggling to expand its footprint in India’s high-value air conditioner (AC) market this year. To cut costs, the company is downsizing its branch network and merging several regional offices.