After disappointing sales, Samsung is reportedly laying off its employees in India. The Indian unit is most likely going to take the brunt of a disappointing sales performance, which has led to a significant decline in both value and volume market share. Samsung is at its lowest levels in a decade. A Money Control report reveals that the company may lay off employees across functions such as sales, marketing, and operations. The report shared that a source warned the figure could rise to as much as 20% of Samsung’s Indian workforce.
This is not the only step that Samsung is taking in response to its poor performance. It is undergoing a restructuring across its smartphone, consumer electronics, and home appliance divisions, which could result in the exit of key executives. Fresh hiring has also been paused and it is also expected that Samsung may also reduce its off-roll employee count, according to sources.
Meanwhile, at Samsung’s Chennai manufacturing plant, workers have been on strike for three days. This has disrupted the production of televisions, refrigerators, and washing machines just ahead of the critical festive season.
It seems like the Indian market is being slightly difficult for Samsung. It is also facing growing competition from brands like Xiaomi and Vivo, coupled with internal conflicts with offline retailers and the departure of key executives. Over the past few quarters, up to 30 senior executives in sales, marketing, and business development have left Samsung, with more exits anticipated.
Let’s see how things pan out for Samsung in the future.
