Samsung Layoffs: Firm Plans To Fire Several Employees In India Amid Declining Sales, Says Report

Samsung Layoffs: In recent quarters, the company has seen up to 30 senior executives in retail, marketing, and business development leave, many of whom have joined Xiaomi

Samsung Layoffs: Samsung's challenges have been exaggerated by fierce competition from brands such as Xiaomi and Vivo

Source : PTI

Samsung Layoffs: Samsung is reportedly reducing its workforce in its Indian division due to disappointing sales, which have caused a sharp drop in the company’s value and market share—reaching their lowest levels in a decade, according to a report from Moneycontrol citing sources.

The layoffs are expected to affect various functions, including sales, marketing, and operations. While some sources in the report suggest the job cuts could be in the "high single digits," others indicate that the numbers may be higher.

“The numbers could go as high as 20 per cent of the Indian workforce,” one of the sources told the publication.

Another source indicated in the report that a restructuring is underway, which will likely lead to the departure of several key executives.

Samsung India told ABP Live that they've not issued any statement on this issue so far.

Samsung's challenges have been exaggerated by fierce competition from brands such as Xiaomi and Vivo, as well as conflicts with offline retailers and the loss of key sales and marketing executives.

In recent quarters, the company has seen up to 30 senior executives in retail, marketing, and business development leave, many of whom have joined Xiaomi. According to the report, sources suggest that additional departures from these functions may take place soon.

Issues with offline retailers persist, including discrepancies between online and in-store pricing, lower margins compared to Chinese competitors, and inconsistent availability of popular models. These ongoing problems remain unresolved.

The All-India Mobile Retailer Association (AIMRA) has sent several letters to Samsung's President and CEO of South-West Asia, JB Park, and Soon Choi, Corporate Executive Vice President of the Mobile Division. The letters call for improved margins, consistent pricing, channel parity, withdrawal of selective upgrades, better sales support, and price reductions to facilitate smoother business operations.

These unresolved issues have led to an inventory buildup ahead of the festive season.

Although Samsung regained its position as the leading smartphone brand in India in 2023, surpassing Xiaomi in the December quarter of 2022, it slipped to third place in market volume during the April-June quarter of 2024, according to market research firms IDC, Counterpoint, and Canalys. During this period, Samsung's smartphone shipments fell by 15.4 per cent, marking its third consecutive quarterly decline, and its volume market share dropped to 12.9 per cent.

This decline has also affected Samsung's value market share, which fell to 16 per cent from 23 per cent in the previous quarter and 21 per cent a year earlier, according to IDC data, as per the report.