Samsung India layoffs: 100 employees asked to leave despite stronger earnings

Samsung India has begun trimming its workforce in its television and home appliance businesses, with around 80-100 employees asked to leave as the electronics giant restructures operations amid rising costs and slowing demand.

According to reporting by The Economic Times, the layoffs are being carried out in batches and affect employees across multiple levels, including director-level executives, team leads at the headquarters, branch managers and area managers.

The move comes despite Samsung India reporting stronger financial performance in FY25, highlighting the pressure facing specific business segments even as the broader organisation remains profitable.

Restructuring gathers pace across consumer electronics business

The current round of job cuts is concentrated in Samsung's television and home appliance operations. Industry executives cited by The Economic Times said the workforce rationalisation could eventually affect up to 25% of the company's sales and marketing staff within its electronics business.

The impacted workforce includes both direct employees and off-roll personnel hired through staffing agencies.

Samsung's domestic electronics sales team comprises roughly 550-600 executives, separate from its significantly larger smartphone sales organisation.

An employee affected by the exercise told The Economic Times that termination letters have been issued in small batches over recent days, with some employees reportedly asked to leave without serving notice periods.

According to the report, Samsung is offering severance packages that include:

• Three months' salary
• An additional month's salary for every completed year of service

Costs and market pressures weigh on operations

Multiple factors have increased pressure on Samsung India's consumer electronics business.

Memory chip prices have more than doubled, while the Indian rupee's depreciation through FY26 has increased costs for smartphones and other electronic products.

At the same time, India's smartphone market has weakened. Industry estimates cited in the report indicate smartphone volumes declined by 11-12% year-on-year.

The workforce reductions reflect how rising input costs, softer consumer demand and organisational restructuring can converge even when overall earnings remain strong.

Samsung has also faced challenges expanding its presence in the premium air-conditioner segment despite significant efforts this year. Higher raw material costs have added further strain on margins.

Strong financial results contrast with workforce reductions

The layoffs come against the backdrop of a sizeable India business.

According to Samsung India's filings with the Registrar of Companies, cited by The Economic Times:

• Revenue rose 12% year-on-year to ₹1.1 lakh crore in FY25
• Net profit increased 38% to ₹11,287 crore
• Home appliances contributed around 11% of total sales
• Smartphones remained the largest revenue-generating category

The figures suggest the current restructuring is linked more closely to operational pressures within specific businesses than to any broad deterioration in Samsung India's financial performance.

Smartphone division remains untouched

For now, Samsung's smartphone workforce has been excluded from the latest round of job cuts.

The company continues to view smartphones as its most critical business in India and is expecting demand to improve during the upcoming festive season.

Premium models such as the Galaxy Fold and Galaxy Flip have reportedly seen positive market response. However, the premium smartphone segment priced above ₹1 lakh still accounts for only around 4% of total market volumes.

There are signs of competitive pressure in the wider smartphone market. Counterpoint Research data cited in the report showed Samsung slipped from second to third position in India's smartphone market during the April-June quarter, with Vivo leading and Oppo occupying second place.

Branch consolidation adds to restructuring effort

Samsung is also reshaping its physical footprint across India.

The company is consolidating several branch operations, including:

• Ranchi and Patna
• Delhi and Gurgaon
• Punjab and Chandigarh

Industry executives indicated these consolidations have resulted in certain roles becoming redundant.

The company had also planned to merge its television and home appliance sales teams to simplify management structures and reduce costs. According to the report, the integration has now been postponed until the December quarter.

More workforce rationalisation may follow

The current layoffs may not mark the end of Samsung India's restructuring efforts.

Another round of workforce rationalisation could take place after Diwali, particularly within the television and home appliance businesses.

No immediate reductions are planned for the mobile phone division. However, future decisions are expected to depend on market performance and festive-season sales trends.

Samsung has also increased prices on some smartphone models by 5-10%, according to the report. The All India Mobile Retailers' Association has said consumer footfall has fallen by around 40% amid repeated price increases.

As Samsung navigates higher costs, shifting consumer demand and intensifying competition, the company's India operations appear set to remain in a period of adjustment despite continuing revenue and profit growth.