Korean smartphone maker Samsung is likely to cut around 1000 jobs in India. The primary reason for this move is the cut-throat competition by Chinese companies. A few years back Samsung was leading the white goods and electronic market but after the entry of players like Xiaomi, Realme, Vivo, and One Plus the Korean brand has lost their market share in all the products range.
According to a media report, the job cuts were part of a cost rationalization program undertaken by the organization based on revenue. The company has already laid off 150-odd employees at its telecom networks division and will complete the entire manpower rationalization exercise by October.
The report also pointed out that the company had frozen recruitments since April, and it will be reviewed in coming months depending on financial performance during the upcoming festive seasons.
While on the other hand, Samsung Spokesperson termed the media reports as misleading. The spokesperson shared that Samsung is committed to India and continues to invest significantly across its businesses.
A statement from Samsung said “We have demonstrated our commitment by building the World's Largest Mobile Factory in Noida, investing in local R&D and we are exploring new businesses such as 5G Network, among others. In the past one year, we have generated 2,000 new jobs at Samsung. Samsung India’s business continues to grow and expand, hence we will hire more talent across businesses through the year. As we contribute to job creation, we continuously realign resources as per business priorities to make our business more robust and efficient for long term success.”
It can be recalled that in 2017, the company announced to invest Rs 5000 crores in their Noida plant. The company was also targeting to add around 3500 jobs directly and indirectly.