Samsung India Implements Layoffs Amid Rising Costs and Declining Demand

New Delhi, September 8 (Daily Kiran) : Samsung India has initiated layoffs within its television and home appliances division, responding to increasing costs and a decline in consumer demand. This move comes as the company seeks to streamline operations amid institutional restructuring.

Reports indicate that the layoffs are affecting employees at various levels, including directors, team leaders, branch managers, and area managers. The process is being carried out in multiple phases, with termination letters issued to staff over the past few days. Some employees have reportedly been asked to leave immediately, bypassing the usual notice period.

Samsung has declined to comment on these reports when approached for clarification. However, the company is offering affected employees a severance package that includes three months’ salary and an additional month’s pay for each year of service.

This decision arrives at a challenging time for consumer electronics companies, which are grappling with low demand and rising operational costs. Factors contributing to these increased expenses include high memory chip prices, escalating raw material costs, and the depreciation of the Indian rupee.

Additionally, the smartphone market in India has seen a year-on-year decline of approximately 12%. Industry experts predict a further annual drop of around 13% in 2026, although some improvement is anticipated in the second half of the year due to seasonal demand during the festive period.

Samsung had also planned to merge its television and home appliance sales teams; however, reports suggest that this consolidation has been postponed until the December quarter. In the previous fiscal year, Samsung India reported revenues exceeding ₹1.1 lakh crore and a profit of ₹11,287 crore.

Furthermore, a report forecasts that global shipments of foldable smartphones are expected to surpass 100 million units by the end of 2026, marking a significant milestone for this category, which first saw a commercially available device launched eight years ago.