New Delhi, Sept. 8 -- Samsung India has reportedly begun laying off executives from its consumer electronics business, with around 80 to 100 employees in its television and home appliance divisions asked to leave so far.
The job cuts come as the company's electronics business faces pressure from rising input costs, weaker sales and shrinking margins. The affected employees include director-level officials and team leaders at the headquarters, as well as branch and area managers across the company's operations. The restructuring could eventually affect up to 25% of the sales and marketing workforce in the electronics business, including employees hired through manpower agencies, according to the report cited in the article. Samsung's smartphone division has so far been kept outside the restructuring. The smartphone business is the company's largest operation in India, and a recovery in phone sales could have a significant impact on its overall performance in the country.
Samsung currently has around 550-600 executives in its domestic electronics sales team, in addition to a much larger sales workforce dedicated to smartphones. Employees affected by the latest cuts have reportedly received termination letters in small batches over the past few days. The company is offering severance equivalent to three months' salary, along with an additional month's pay for every year of service, according to the report.
Published by HT Digital Content Services with permission from Millennium Post.