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Samsung India has started reducing its workforce in its television and home appliance divisions as the company deals with rising input costs, softer consumer demand and an ongoing restructuring exercise, according to a report by The Economic Times. The company has so far asked an estimated 80-100 executives to leave, with the exits reportedly being carried out in phases. Employees across different positions are said to have been affected, including directors, headquarters-based team leaders, as well as branch and area managers.
The latest job cuts are primarily focused on Samsung’s television and home appliance operations. However, the restructuring could affect a much larger section of the company’s sales and marketing workforce.
An industry executive cited in the report said up to 25 per cent of Samsung’s electronics sales and marketing employees could eventually be impacted. The figure includes both staff directly employed by Samsung and workers hired through third-party manpower agencies.
Samsung’s domestic electronics sales team has an estimated 550-600 executives, apart from its considerably larger smartphone sales operation.
An employee affected by the restructuring told ET that termination notices had been handed out in small batches over several days. Some employees were reportedly asked to leave immediately without completing their notice period.
As part of the restructuring, Samsung is reportedly offering affected employees three months’ salary, along with an additional month’s pay for every completed year of service. The move comes as the company faces increasing pressure on profitability due to higher production costs and weaker demand across parts of the consumer electronics market.
One of the major challenges for Samsung has been the sharp increase in memory chip prices, which have reportedly more than doubled.
The Indian rupee has also weakened by nearly 10% through FY26, making imported components and electronic products more expensive. Rising raw material prices have further added to the pressure on margins.
The company is therefore attempting to streamline its operations while managing costs in a challenging market environment.
Samsung’s smartphone division has reportedly not been included in the current round of layoffs.
The smartphone business remains the company’s most important revenue contributor in India, accounting for roughly three-fourths of its revenue in the country.
However, the segment is also facing a slowdown. Industry estimates cited by ET suggest that India’s smartphone market could see an 11-12% year-on-year decline in volumes.
Samsung continues to consider smartphones its core business in India and is banking on stronger demand during the upcoming Diwali festive season.
Samsung has also struggled to make significant gains in the premium air-conditioner market despite stepping up its efforts this year. Higher raw material prices have made the situation more difficult for its consumer electronics business, putting additional pressure on profitability.
At the same time, Samsung’s premium Galaxy Fold and Flip smartphones have reportedly performed well. However, the premium segment remains relatively small, with phones priced above Rs 1 lakh accounting for only around 4% of the overall smartphone market by volume.
The company will now be looking to control costs while hoping that festive-season demand and stronger sales of premium products can help ease some of the pressure on its India operations.
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