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Samsung Layoff: Samsung is facing a lot of problems in the Indian market. Its sales have declined and it is in its weakest position in ten years. Now the brunt of this is going to fall on Samsung's employees and the company has decided to lay off employees. Moneycontrol has received this information from sources. According to sources, the layoffs can hit the employees of sales, marketing and operations. One source even said that up to 20 percent of its employees in India could be laid off.
Officials can also be fired
A source said that the structure of Samsung's smartphone, consumer electronics and home appliances business is changing. Due to this, some of the company's key officials may also be laid off. The company has currently stopped hiring and the vacant posts of officials are also not being filled. According to the source, Samsung may also reduce the number of off-roll employees.
This is happening at a time when the workers of the company's manufacturing plant in Chennai are on an indefinite strike and this strike continues for the third day. Due to this strike, the production of TVs, refrigerators and washing machines is getting affected before the festive season. According to the source, Samsung management has called the Indian team to South Korea to discuss the situation and restructuring.
how is the business situation
Samsung once again remained the largest smartphone company in India in 2023 last year after overtaking Xiaomi in the December 2022 quarter. However, according to market research firms IDC, Counterpoint and Canalys, Samsung has slipped to third place in terms of volume in the April-June 2024 quarter. During this period, Samsung's smartphone shipments declined by 15.4 percent, which was the third consecutive quarterly decline, and its volume market share fell to 12.9 percent. Due to this, the value market share also declined from 23 percent to 16 percent on a quarterly basis, from 21 percent a year ago, according to IDC data.
What is Samsung's problem?
Stiff competition from brands like Xiaomi and Vivo and disputes with offline retailers, along with the departure of key sales and marketing executives from the company, have added to Samsung's troubles. Over the past few quarters, more than 30 senior Samsung executives in retail, marketing and business development roles have left the company and many of them have joined Xiaomi. According to sources, many more executives may leave the company in the coming days. The dispute with offline retailers is due to the huge difference in prices on online-offline stores, low profit margins compared to Chinese smartphone companies and uncertainty over the availability of stock of popular models.