Samsung India Electronics has begun laying off employees in phases as mounting cost pressures, weakening sales and shrinking margins put its consumer electronics business under strain.
Samsung India Electronics has begun laying off employees in phases as mounting cost pressures, weakening sales and shrinking margins put its consumer electronics business under strain. Around 80-100 executives across the television and home appliance businesses have reportedly been asked to leave so far, according to reports. The affected employees include director-level officials and team leads at the company’s headquarters, along with branch and area managers across its operating locations, executives said.
“Up to 25% of its sales and marketing workforce in the electronics business — including offroll employees hired through manpower agencies — could be affected,” one executive told ET on the condition of anonymity.
Termination letters issued in batches
Samsung India’s domestic electronics sales organisation has around 550-600 executives, apart from the significantly larger workforce handling smartphone sales. An employee affected by the latest cuts told the financial daily that termination letters have been handed out in small batches on a daily basis over the past few days. Several employees have reportedly been asked to leave without serving their notice periods.
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As part of the severance package, the company is offering three months’ salary, along with an additional month’s pay for every year of service.
Rupee slide adds to Samsung’s woes
Samsung’s challenges have been compounded by the rupee’s nearly 10% decline through FY26. While the currency has remained largely stable in the current fiscal year after hitting a trough in May, the earlier depreciation has continued to weigh on the company.
The weaker rupee has pushed up prices of Samsung smartphones and several other electronic products, putting additional pressure on sales growth.
The broader Indian electronics industry is also grappling with slowing sales and margin growth. Industry estimates suggest that smartphone volumes in India have declined 11-12% year-on-year.
For Samsung India, the stakes are particularly high as mobile phones account for roughly three-fourths of its local revenue.
Meanwhile, the South Korean electronics giant has struggled to gain significant ground in India’s lucrative air-conditioner market, despite intensifying its efforts this year. Rising raw material costs have further squeezed its consumer electronics operations.
Samsung restructures branch network
As part of its cost-cutting drive, Samsung is also restructuring its branch network. Several offices are being merged, including locations such as Ranchi and Patna, Delhi and Gurgaon, and Punjab and Chandigarh.
The restructuring has rendered some positions redundant, according to industry executives.
Smartphone division spared—for now
Despite the broader workforce reduction, Samsung’s smartphone division has been spared from the current round of layoffs, according to the report.
The mobile business remains Samsung’s biggest revenue generator in India, making a recovery in smartphone sales crucial to the company’s overall performance in the country.
Samsung’s latest super-premium Galaxy Fold and Flip smartphones have received a positive response. However, devices priced at Rs 1 lakh and above account for only around 4% of the overall smartphone market by volume, limiting the impact of the premium segment on Samsung’s wider market position.
The company also lost ground in India’s broader smartphone market during April-June, according to the latest data from market tracker Counterpoint Research. Samsung slipped to third place from second, with Vivo taking the top spot and Oppo moving into second in a fiercely contested market.
Counterpoint Research said Samsung has been relying on aggressive promotions across several key smartphone models.
Strong FY25 numbers mask growing pressure
Samsung India’s total revenue climbed to Rs 1.1 lakh crore in FY25, marking a 12% increase from the previous year, according to its latest filings with the Registrar of Companies.
Home appliances accounted for 11% of sales, making the category Samsung India’s second-largest business after mobile phones.
The company reported a net profit of Rs 11,287 crore in FY25, up 38% from the previous fiscal year. Financial results for FY26 are yet to be announced.
Samsung’s global mobile business, however, also suffered a setback in the June quarter, reporting an operating loss. Its consumer electronics operations remained under pressure, even as robust demand for memory chips fuelled a sharp jump in semiconductor profits.
“There's manpower rationalisation in the home appliance and television businesses. The second round can happen after Diwali,” said one of the executives cited earlier.
“There will be no immediate job cuts in the mobile phone business as this is its bread and butter and the company expects a rebound in sales during Diwali. However, it might get evaluated later.”
Smartphone prices rise again
Samsung has also raised prices of some smartphone models by 5-10% on Monday, marking the company’s third price increase this month.
The All India Mobile Retailers’ Association has said repeated price hikes have triggered a sharp 40% decline in consumer footfall, adding another layer of uncertainty for smartphone manufacturers and retailers.
Samsung India has also deferred a proposed merger of its home appliance and television sales teams to the December quarter.
Industry executives said the restructuring is expected to help Samsung reduce costs and streamline management layers. However, one executive said the proposed merger has been deferred.
