Samsung is set to lay off up to 20% of its employees in India as it grapples with declining sales and increased competition from Chinese companies.
According to sources reported by Moneycontrol, the layoffs will impact staff in sales, marketing, and operations.
The company is also halting hiring and may reduce its number of off-roll employees as part of its restructuring efforts.
Challenges and Employee Impact
The company is currently undergoing significant changes in its smartphone, consumer electronics, and home appliance sectors.
This restructuring might also lead to the departure of some key executives.
Additionally, Samsung’s manufacturing plant in Chennai is facing disruptions due to an ongoing indefinite strike, affecting the production of TVs, refrigerators, and washing machines.
Current Business Health
Samsung, which was the leading smartphone brand in India as of late 2023, has slipped to third place in the April-June 2024 quarter.
Market research firms IDC, Counterpoint, and Canalys report a 15.4% decline in smartphone shipments, marking its third consecutive quarterly drop.
The company’s market share has decreased from 23% to 16%, reflecting challenges in maintaining its market position.
Reasons Behind the Decline
The company faces intensified competition from brands like Xiaomi and Vivo, coupled with disputes with offline retailers over pricing discrepancies and low profit margins.
Additionally, Samsung has experienced a significant turnover of senior officials, many of whom have joined competing firms like Xiaomi.
These factors contribute to the ongoing restructuring and layoffs as Samsung seeks to navigate its current difficulties.
