Samsung India Layoffs: 80-100 Executives Asked To Leave In Restructuring Drive

Samsung India has begun cutting jobs across its television and home appliance businesses, with 80-100 executives reportedly asked to leave as rising costs, weaker consumer demand and an ongoing restructuring put pressure on the electronics giant's India operations, The Economic Times reported.

Up To 25% Of Sales, Marketing Staff May Be Affected

The layoffs are reportedly being carried out in batches and involve employees at different levels, including director-level executives, team leaders, branch managers and area managers.

An industry executive cited by ET said up to 25% of Samsung's sales and marketing workforce in its electronics business could eventually be affected. The figure includes both direct employees and off-roll staff hired through manpower agencies.

Samsung's domestic electronics sales team has around 550-600 executives, apart from its significantly larger smartphone sales organisation.

An employee affected by the restructuring told ET that termination letters had been issued in small batches over recent days, with some staff reportedly asked to leave without serving their notice periods.

According to the report, Samsung is offering three months' salary along with an additional month's pay for every year of service as severance.

Rising Costs Add Pressure

Samsung's India operations are facing pressure from higher input costs and weaker demand.

Memory chip prices have more than doubled, while the rupee's nearly 10% decline through FY26 has increased costs for smartphones and other electronic products. India's smartphone volumes have also reportedly declined by 11-12% year-on-year.

Smartphones account for around three-fourths of Samsung's revenue in India, making the performance of the mobile business particularly important to the company.

The consumer electronics business has faced additional pressure from higher raw material costs, while Samsung has struggled to expand its position in the high-value air-conditioner segment despite increased efforts this year.

Smartphone Business Spared For Now

Samsung's smartphone workforce has reportedly been kept out of the current round of job cuts as the company expects demand to improve during the upcoming Diwali season.

Its premium Galaxy Fold and Flip models have received a positive response, although smartphones priced above ₹1 lakh account for only around 4% of overall market volumes.

Samsung nevertheless faces increased competition in the broader smartphone market. Counterpoint Research data cited by ET showed the company slipping to third place from second in India's smartphone market during April-June, behind Vivo and Oppo.

Samsung India Revenue Crosses ₹1 Lakh Crore

The restructuring comes despite Samsung India maintaining a sizeable business in the country.

According to its latest filings with the Registrar of Companies, Samsung India's revenue stood at ₹1.1 lakh crore in FY25, a 12% increase from the previous year. Net profit rose 38% to ₹11,287 crore.

Home appliances contributed around 11% of the company's India sales, making the category its second-largest after smartphones.

The current job cuts therefore appear focused on specific business segments and cost control rather than a broad retreat from the Indian market.

Branch Network Also Being Consolidated

Samsung is also restructuring its physical operations in India, including consolidating its branch network.

According to the report, offices in Ranchi and Patna, Delhi and Gurgaon, and Punjab and Chandigarh are being combined, with some positions becoming redundant.

The company had also proposed merging its television and home appliance sales teams to reduce costs and management layers. That merger has reportedly been postponed to the December quarter.

More Job Cuts Could Follow After Diwali

The current layoffs may not be the last.

An industry executive cited by ET said another round of manpower rationalisation could take place after Diwali, particularly across the television and home appliance businesses.

There are reportedly no immediate plans to reduce the mobile workforce, with Samsung continuing to view smartphones as its core business and expecting a festive-season recovery. The division could be reviewed later depending on sales performance.

Samsung has also raised prices of some smartphone models by 5-10%, according to the report. The All India Mobile Retailers' Association has said repeated price increases have contributed to a sharp 40% decline in consumer footfall.

Globally, Samsung's mobile business reported an operating loss in the June quarter, while its consumer electronics operations remained under pressure. Its semiconductor division, however, benefited from strong demand for memory chips.