Industry Odisha Bureau, Sep 08: Samsung India has begun layoffs across its television and appliance units. The move follows a sharp rise in memory chip prices. Industry executives say costs have more than doubled this year. Smartphone sales and margins are also under strain. Around 80-100 executives have reportedly lost their jobs so far.
The cuts include director-level staff and team leads. Branch and area managers at regional offices are also affected. Up to 25% of the sales and marketing workforce could eventually be impacted. This figure includes off-roll employees hired through manpower agencies. No confirmation exists that this full reduction has occurred yet.
Samsung’s smartphone division remains untouched by the layoffs for now. Phones account for roughly three-fourths of the company’s India revenue. Executives expect a Diwali sales rebound to support performance. Immediate mobile-team layoffs are not currently planned, sources said. However, the business could still face review later this year.
Rising memory chip costs have pushed up device prices industrywide. A nearly 10% rupee decline through FY26 added further pressure. Samsung raised smartphone prices again this week, its third hike this month. The All India Mobile Retailers’ Association reported a 40% drop in footfall. Repeated price increases are being blamed for weakening consumer demand.
India’s broader smartphone market has also slowed considerably this year. Industry estimates show volumes fell 11-12% year-on-year. Samsung slipped to third place in the April-June quarter. Counterpoint Research placed Vivo first and Oppo second nationally. Samsung previously held the second position before this ranking shift.
The company’s premium Galaxy Fold and Flip models performed relatively well. Still, phones priced above ₹1 lakh represent only 4% of volumes. Strong flagship demand has not offset broader market softness. Samsung is simultaneously consolidating branch offices to cut costs. Ranchi-Patna, Delhi-Gurgaon, and Punjab-Chandigarh operations are being merged.
These mergers have made several regional positions redundant, executives said. Affected staff are being offered three months’ severance pay. An extra month’s salary applies for each year served. Employees are reportedly leaving without serving standard notice periods. Samsung India has not responded to requests for comment.
Despite current pressures, Samsung’s FY25 results showed strong growth. Revenue reached ₹1.1 lakh crore, up 12% year-on-year. Net profit rose 38% to ₹11,287 crore last fiscal year. FY26 financial results have not yet been disclosed publicly.
A planned merger of television and appliance sales teams was postponed. It may now proceed during the December quarter instead. One executive suggested a second layoff round after Diwali. This remains an industry expectation rather than a confirmed plan.
Samsung India’s near-term outlook now hinges on two forces. Rising component costs continue squeezing profitability across consumer electronics categories. Meanwhile, festive-season smartphone demand could help stabilise overall performance. How these pressures balance will shape the company’s next moves.
