Mobile safe for now: Samsung India trims TV, appliance staff in pre-Diwali cost cut

New Delhi: Samsung India Electronics has initiated phased workforce reductions across its television and home appliances divisions, with between 80 and 100 executives asked to leave in recent days. According to a report by The Economic Times, the workforce rationalisation spans multiple operational tiers, impacting director-level officials, team leads at corporate headquarters, and regional branch managers. Industry sources cited in the report indicate that the restructuring could eventually affect up to 25 per cent of the 550- to 600-strong sales and marketing team in the consumer electronics division, including off-roll employees hired through staffing agencies. Affected personnel are reportedly receiving termination letters in small daily batches alongside severance packages comprising three months' base salary plus an additional month's pay for each completed year of service.

Mounting Cost Pressures and Network Consolidation

The job cuts come amid the escalating operational costs driven by a doubling of memory chip prices, rising raw material expenses, and currency depreciation that has severely squeezed profit margins. As reported by ET, Samsung is simultaneously consolidating its regional branch network to curb administrative overheads, merging offices across key territories such as Ranchi with Patna, Delhi with Gurgaon, and Punjab with Chandigarh. These regional consolidations have rendered several management positions redundant as the company streamlines its commercial setup. The restructuring comes despite Samsung India reporting a 12 per cent year-on-year revenue increase to ₹1.1 lakh crore in FY25, underscoring segment-specific margin pressures within home appliances and television operations.

Smartphone Division Insulation and Post-Diwali Outlook

While consumer electronics units face structural trimming, Samsung's flagship mobile phone division has been insulated from the current round of layoffs. Smartphones account for approximately three-quarters of the company's domestic revenue, prompting leadership to protect mobile sales teams to capitalise on the crucial Diwali festive shopping period. However, industry sources cited by ET revealed that a second wave of workforce rationalisation could be evaluated following Diwali, with future staffing levels dependent on festive sales recovery and broader market conditions across the consumer electronics portfolio.