Key Highlights:
- Layoffs across TV, home appliance units: Samsung India has reportedly laid off executives across its television and home appliance businesses as part of a cost-rationalisation exercise.
- Multiple levels affected: Reports suggest the reduction spans directors, team leaders, branch managers and area managers, with some asked to leave immediately.
- Severance package offered: Affected employees are reportedly being offered three months' salary plus one month's salary per completed year of service.
- Samsung declines to comment: The company did not confirm the reports when contacted.
- Industry-wide demand slowdown: Smartphone shipments in India have fallen around 12% year-on-year, with analysts expecting a further 13% decline in 2026.
- Still profitable despite restructuring: Samsung India reported revenue of over Rs 1.1 lakh crore and net profit of Rs 11,287 crore in FY25.
New Delhi: Samsung India has reportedly laid off their executives across its television and home appliance businesses as part of a cost-rationalisation exercise amid rising operating costs, muted consumer demand and organisational restructuring, as per multiple reports.
Reports suggest that the workforce reduction affects employees across various levels, including directors, team leaders, branch managers and area managers.
The layoffs are being carried out in phases with termination letters issued over the past few days, according to them.
Some employees have reportedly been asked to leave immediately without serving their notice period.
When contacted, Samsung declined to comment regarding such reports.
Severance Package Details
In addition, Samsung is offering affected employees a severance package comprising three months' salary along with an additional month's salary for every completed year of service.
Why The Consumer Electronics Sector Is Under Pressure
The move comes as consumer electronics companies grapple with softer demand and rising costs.
Moreover, factors such as higher memory chip prices, elevated raw material costs and depreciation of the Indian rupee have added to operating expenses, as per reports.
Understanding The Cost Pressures: Memory chips (RAM and storage) are core components in TVs, smartphones and appliances, so a rise in global memory chip prices directly increases manufacturing costs. Combined with a weaker rupee — which makes imported components and raw materials costlier in local-currency terms — companies like Samsung face squeezed margins even without a change in consumer prices, often prompting cost-cutting measures like restructuring or layoffs to protect profitability.
Additionally, smartphone shipments in India have declined by about 12 per cent year-on-year.
Similarly, some industry experts expect that the Indian smartphone market to decline by around 13 per cent year-on-year in 2026, with the second half likely to perform better than the first half as festive demand provides some support.
Planned Team Integration Deferred
Samsung had also planned to integrate its television and home appliance sales teams, although the move has reportedly been deferred until the December quarter, say reports.
Company Remains Profitable
Despite the restructuring, Samsung India reported revenue of over Rs 1.1 lakh crore and net profit of Rs 11,287 crore in FY25.
Foldable Smartphones Hit Global Milestone
Separately, a report noted that global foldable smartphone shipments are expected to cross 100 million cumulative units by the end of 2026, which is a major milestone for the category in its eighth year since the first commercially available foldable was launched.