Samsung India Electronics has begun cutting jobs at the mid-to-senior level in its Consumer Electronics (CE) division and may reduce its workforce further in the coming weeks as the company looks to control costs amid rising input prices and subdued consumer demand, industry sources said.

The company has so far laid off around 8-10 employees in the CE division, which includes its television, digital appliances and home electronics businesses, the sources said.

Those affected in the first phase include employees ranging from general managers, team leads and branch or area managers to directors, they added.

Samsung Electronics India may eliminate another 40-50 positions in the second phase of the restructuring, according to industry sources. The CE division has around 500-600 executives.

The move is part of an effort to streamline operations and improve efficiency as Samsung faces intense competition in the consumer electronics market from Korean and Chinese rivals.

A query sent to Samsung India over the development remained unanswered till the time of filing the story.

Branch offices being merged

Samsung is also consolidating some of its branch offices across India, a move that could result in further redundancies, the sources said.

The company has recently merged its Patna and Ranchi branches, while similar consolidation is being considered for the Delhi-Gurugram and Punjab-Chandigarh branches, among others.

Samsung reported revenue of Rs 1.14 lakh crore in FY25. About 10-12 per cent of its revenue comes from the consumer electronics business, while around 70 per cent is generated by its mobile phone operations.

Competition pressures Samsung's CE business

Samsung continues to lead India's television market, including the premium segment, and has remained the top-selling brand for nine consecutive years.

However, the company is facing strong competition in categories such as refrigerators and washing machines. Its efforts to regain ground in the room air-conditioner segment have also yet to make a significant impact.

The smartphone business is facing competitive pressures as well. In India's super-premium smartphone segment, comprising devices priced above USD 800, Apple remains Samsung's key rival.

Competition has also intensified in the affordable and mid-range segments, where Chinese smartphone makers are offering feature-rich devices at competitive prices.

Weak rupee, higher chip costs add pressure

Samsung, like other electronics manufacturers, is also dealing with the impact of a weaker Indian rupee against the US dollar, which has increased the cost of imported components at a time when consumer demand remains subdued.

The resulting margin pressure has been compounded by a sharp rise in memory chip prices over the past year. Prices have increased amid strong demand from artificial intelligence applications, data centres and high-end consumer electronics.

Smartphone division not yet in layoff crosshairs

Samsung's smartphone division is not expected to face immediate job cuts, as the company is anticipating a recovery in sales during the festive season, the sources said.

However, the division could be reviewed at a later stage depending on business conditions, they added.

The latest move follows a similar restructuring exercise by Samsung globally. The company was reported to have cut more than 700 jobs across its US display, smartphone and other consumer electronics operations in July.