Samsung Electronics to lay off 200 executives in India amid slowing growth

Samsung Electronics is planning to lay off over 200 executives in its Indian operations, according to a report by The Economic Times. The decision comes in response to slowing business growth, declining consumer demand, and a loss of market share in its key smartphone segment. Senior industry executives cited cost-cutting and efforts to improve profitability as major reasons for the layoffs.

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The job cuts will affect multiple departments, including mobile phones, consumer electronics, home appliances, and support functions. The reduction represents about 9-10% of Samsung’s managerial workforce in India, which currently includes around 2,000 executives.

The layoffs come at a difficult time for Samsung India, with workers at its Chennai factory currently on strike. The strike, now in its third day, has disrupted production of televisions, refrigerators, and washing machines, leaving the factory operating at only 50-80% of its capacity. The disruption is particularly challenging as it coincides with the country’s festive season, a key sales period.

In addition to the layoffs, Samsung is reportedly considering restructuring its Indian operations. This could involve merging business divisions like television and home appliances, potentially leading to further job cuts. A final decision on the restructuring is expected after Diwali, as the company seeks to streamline its operations and reduce overhead costs.