Sep 11, 2024 12:44 PM IST
Samsung Electronics plans to lay off over 200 executives in India, affecting various functions due to declining business growth and poor consumer demand.
Samsung Electronics is reportedly laying off over 200 executives in the Indian business across functions. This comes as the company’s business growth in the country is slowing down due to poor consumer demand impacting its sales, the Economic Times reported citing four unnamed senior industry executives in the know.
Which segments will be impacted in Samsung India layoffs?
The lay-offs will happen in mobile phones, consumer electronics, home appliances and support functions which will be around 9-10% of its total managerial workforce, the report claimed.
The employees being laid off are being offered three months of salary as per their employment contract and a severance package of one-month salary for every year of service, the report added.
The chief executive officer of a rival home appliance company said as per the report that he has received “frantic calls” and resumes from Samsung India executives for jobs as “some of the people who have been laid-off include senior executives as well who are ready to join us even at a substantial lower salary.”
Samsung India strike
This comes as workers in Samsung’s Chennai factory are on an indefinite strike for the third day which has impacted production of televisions, refrigerators and washing machines ahead of the festive season. The company is still trying to run the plant with production at around 50-80% of its capacity, news agency Reuters reported.
Samsung India to completely restructure?
The report claimed that Samsung is planning to restructure its operations which may include merger of certain business divisions like the television and home appliances. This may increase the number of people laid off, the executives said as per the report and the aim of the move is to cut management layers, manpower, overheads and reduce inefficiencies. The final decision will be taken after Diwali regarding the same, the report added.