Samsung India has begun trimming its workforce in its television and home appliance businesses as rising costs, weaker consumer demand and an ongoing restructuring put pressure on the electronics major’s operations, The Economic Times (ET) reported.
According to ET, the company has so far asked around 80-100 executives to leave. The layoffs are being carried out in batches and involve employees at various levels, including director-level officials, team leads at the headquarters, and branch and area managers.
The move comes as Samsung faces pressure from higher input costs and weaker demand. Memory chip prices have more than doubled, while the Indian rupee’s nearly 10% decline through FY26 has increased the cost of smartphones and other electronic
products. Higher raw material costs have added to the pressure on margins.
The current layoffs are concentrated in Samsung’s television and home appliance businesses, but the impact could be broader.
An industry executive cited by ET said as many as 25% of the sales and marketing workforce in Samsung’s electronics business could be affected. This includes both employees directly on Samsung’s payroll and off-roll workers hired through manpower agencies.
Samsung’s domestic electronics sales team has around 550-600 executives, excluding its much larger smartphone sales organisation.
An employee affected by the restructuring told ET that termination letters had been issued in small batches on a daily basis over the past few days. Some employees were reportedly asked to leave without serving their notice periods.
According to the report, Samsung is offering three months’ salary along with an additional month’s pay for every year of service as severance.
Why is Samsung cutting jobs?
Samsung’s India business is facing pressure on multiple fronts. Memory chip prices have risen sharply, while the rupee’s depreciation has increased costs for electronics companies. At the same time, India’s smartphone market has weakened, with industry estimates cited by ET pointing to an 11-12% year-on-year decline in smartphone volumes.
The smartphone business remains particularly important for Samsung in India, accounting for around three-fourths of the company’s revenue in the country.
Samsung has also faced challenges in expanding its presence in the high-value air-conditioner segment despite making aggressive efforts this year. Rising raw material costs have further squeezed its consumer electronics operations.
Smartphone business spared for now
Samsung’s smartphone workforce has not been included in the current round of layoffs, according to ET. The company continues to view smartphones as its “bread and butter” and is expecting demand to improve during the upcoming Diwali season. A recovery in festive-season sales could therefore provide some relief to the business.
Samsung’s premium Galaxy Fold and Flip models have also received a positive response. However, smartphones priced above Rs 1 lakh account for only around 4% of the overall market by volume.
Samsung’s broader smartphone business is nevertheless showing signs of pressure. Counterpoint Research data cited by ET showed the company slipping to third place in India’s smartphone market in the April-June quarter, from second previously. Vivo took the top position, while Oppo ranked second.
Strong overall financial performance despite restructuring
The job cuts come despite Samsung India continuing to operate a sizeable and profitable business. According to its latest filings with the Registrar of Companies, Samsung India’s revenue rose 12% to Rs 1.1 lakh crore in FY25. Net profit increased 38% to Rs 11,287 crore.
Home appliances contributed around 11% of Samsung India’s sales, making the category the company’s second-largest business after smartphones.
The restructuring therefore appears to be focused on controlling costs and improving efficiency in specific businesses rather than reflecting a collapse in Samsung’s overall India operations.
Samsung also consolidating its branch network
Alongside the workforce reduction, Samsung is restructuring its physical operations in India. The company is consolidating its branch network, with several offices being merged. ET cited examples including Ranchi with Patna, Delhi with Gurgaon, and Punjab with Chandigarh.
Industry executives told the publication that the consolidation has resulted in some positions becoming redundant.
Samsung had also proposed merging its home appliance and television sales teams to reduce costs and management layers. However, ET reported that the proposed merger has now been pushed to the December quarter.
More job cuts could follow after Diwali
The current round of workforce rationalisation may not be the last. An industry executive cited by ET said another round of manpower rationalisation could take place after Diwali, particularly in the television and home appliance businesses.
There are no immediate plans to reduce headcount in the mobile phone business, according to the report. However, the smartphone workforce could be reviewed later depending on how sales perform during the festive season.
Samsung is also dealing with higher consumer prices. The company has raised prices on some smartphone models by 5-10%, while the All India Mobile Retailers’ Association has said consumer footfall has dropped sharply by 40% amid repeated price increases.
Globally, Samsung’s mobile business swung to an operating loss in the June quarter, while its consumer electronics businesses remained under pressure. Its semiconductor business, however, benefited from record demand for memory chips.
Overall, the latest restructuring highlights the contrasting performance of Samsung’s businesses: strong semiconductor demand and a profitable India operation on one side, but weaker consumer electronics demand, higher costs and pressure on margins on the other.
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