Mounting chip costs force major job cuts at Samsung India
Mounting financial pressures have driven Samsung India to terminate 80 to 100 executives in its television and home appliance divisions. Branch managers, team leads, and director-level officials are currently receiving termination letters in phased manner. Employees asked to leave without serving notice periods will receive three months of salary, plus an additional month for every year they worked.
Skyrocketing memory chip prices, which recently doubled, directly threaten corporate margins across the broader Asian tech sector. Currency fluctuations compound this issue, with the Indian rupee declining nearly 10% during FY26. Consequently, up to 25% of the 550 to 600 executives within the domestic electronics sales network could lose their jobs.
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Smartphone division protected until Diwali
Mobile phones generate roughly 75% of domestic revenue for the tech giant, shielding this specific workforce from immediate reductions. Retailers hope for strong consumer purchasing during the upcoming Diwali festival to stabilize the market. However, overall smartphone volumes have already dropped by 11% to 12% year-on-year. Rival brands like Vivo and Oppo recently pushed the company down to third place in national market share between April and June. Furthermore, footfall at retail stores has plummeted by 40% after recent 5% to 10% price hikes on various handset models.
Regional offices are actively merging to cut operational expenses. Corporate planners are combining branches in Ranchi and Patna, Delhi and Gurgaon, as well as Punjab and Chandigarh. Despite these severe cost-cutting measures, overall financials remain robust. Corporate filings for FY25 show total revenue reached Rs 1.1 lakh crore, with net profits rising 38% to Rs 11,287 crore. Management plans to merge the television and home appliance sales teams entirely by the December quarter, indicating further workforce reductions may occur after the festive season.
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