Electronics giant Samsung India, facing the double blow of rising costs and sluggish sales, has started the process of cutting jobs in India. The company is laying off executives and employees from its television and home appliances business. According to sources and media reports, so far around 80 to 100 executives at different levels have been asked to leave the company. The affected employees include director level officers and team leaders posted at Samsung India Headquarters as well as branch and area managers. Pressure on Samsung India increased due to 3 reasons Samsung Electronics is currently facing many challenges globally and domestically… Up to 25% of sales and marketing staff may be affected. This round of layoffs is currently limited to the television and home appliances vertical, but the number of affected employees may increase further. The Economic Times report quoted an executive as saying that 25% of the sales and marketing workforce of the electronics business could be affected. This potential cut also includes off-roll employees hired through manpower agencies. Samsung has about 550 to 600 executives in its home electronics sales division, which does not include its larger smartphone sales organization. According to the affected employees, the company has been issuing termination letters in small batches for the last few days. Some employees have been asked to leave immediately without completing the notice period. Samsung is giving them 3 months salary as severance package along with 1 month additional salary for every year of service. Smartphone division is safe, but challenges are not less there too. Samsung has kept its biggest business i.e. smartphone division away from these layoffs for the time being. In India, almost three-fourths i.e. 75% of the company’s total revenue comes from the smartphone segment alone. Therefore, there are high expectations of improvement in the financial performance of the company due to recovery in phone sales. However, the overall trend in the Indian smartphone market continues to be weak. According to industry estimates, smartphone sales have declined by 11 to 12% year-on-year. On the other hand, Samsung has been struggling to expand its reach in India’s high-value air conditioner (AC) market despite efforts this year. To reduce expenses, the company is shrinking its branch network and many regional offices are being merged.
Source link
[ad_3]
Layoffs begin in TV-Home Appliances division in Samsung India: 100 employees laid off as part of cost cutting; Up to 25% of the sales-marketing team will also be affected.
