Termination letters are being sent out in small batches at Samsung India Electronics, with some employees being asked to leave without serving their notice periods, according to The Economic Times. After the South Korean electronics giant restructures its sales operations amid rising costs and weaker consumer demand, around 80-100 executives have reportedly been asked to leave so far.
The cuts spread across Samsung's television and home appliance businesses. The affected employees include director-level executives and headquarters team leads, as well as branch and area managers at various operating locations, the report said, citing multiple industry executives.
The restructuring does not currently appear to extend to Samsung's much larger smartphone sales business. Instead, the workforce reduction is focused on its broader consumer electronics operations, particularly televisions and home appliances.
As much as a quarter of the sales and marketing workforce, including off-roll staff hired via manpower agencies, could eventually be hit, according to one executive.
Behind the move lies a squeeze on smartphone margins after global memory chip prices more than doubled, compounded by a near-10% slide in the rupee through FY26 that has pushed up costs across phones and electronics.
Smartphone volumes in India have fallen 11-12% year-on-year, industry estimates show, while Samsung's push into premium air conditioners has failed to gain the traction it hoped for. To cut costs, the company is also merging overlapping branch offices, including Ranchi with Patna, Delhi with Gurgaon, and Punjab with Chandigarh, leaving some roles redundant.
Mobile phones still generate three-fourths of Samsung's India revenue, and that business is being kept out of the layoffs for now, with executives banking on a Diwali sales rebound. A second round of cuts could follow the festive season, one executive said.
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Staff being let go are being offered three months' pay plus an extra month per year of service as severance. Samsung India did not respond to an email query from the paper.
The pressure comes even as Samsung's premium Galaxy Fold and Flip series has sold well, though phones priced above Rs 1 lakh remain a sliver of overall volumes at 4%.
The company slipped from second to third place in India's smartphone market in the April-June quarter, overtaken by Vivo and running close behind Oppo, per Counterpoint Research data.
Samsung India posted revenue of Rs 1.1 lakh crore in FY25, up 12% year-on-year, and net profit of Rs 11,287 crore, up 38%, according to Registrar of Companies filings; FY26 numbers are yet to be disclosed.
The retail trade is already feeling the strain, the All India Mobile Retailers' Association has reported a 40% drop in footfall following repeated price increases, with Samsung raising smartphone prices by 5-10% on Monday, its third hike this month.
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