Samsung India layoffs: Nearly 100 executives asked to leave as chip costs squeeze TV, home appliance business

Samsung India has begun cutting jobs in its television and home-appliance businesses as rising memory chip prices, weaker consumer demand and higher operating costs put pressure on margins, according to media reports.

Around 80-100 executives have been asked to leave the company in batches, with the affected employees including director-level officials, team leads, branch managers and area managers, according to industry executives cited in media reports.

The latest round of Samsung India layoffs may not be the company’s final workforce reduction. An industry executive cited in media reports said a second round of manpower rationalisation could take place after Diwali, particularly across the television and home-appliance businesses.

The latest layoffs are part of a broader restructuring of Samsung’s India operations, with the company also consolidating some regional offices and looking to eliminate overlapping functions across its television and home-appliance businesses.

Samsung India layoffs could affect up to 25% of sales workforce

The current job cuts are concentrated in Samsung’s television and home-appliance businesses, but the impact could extend further.

Up to 25% of Samsung’s sales and marketing workforce in its electronics business could eventually be affected, according to an industry executive cited in media reports. This includes both employees on Samsung’s payroll and off-roll workers hired through manpower agencies. Samsung’s domestic electronics sales organisation has around 550-600 executives, apart from its substantially larger smartphone sales organisation.

The layoffs are reportedly being carried out in batches. An employee affected by the restructuring told media that termination letters had been issued over several days, with some employees being asked to leave without serving their notice period. Samsung is offering affected employees three months’ salary along with an additional month’s salary for every year of service as severance, according to the reports.

Why is Samsung India cutting jobs?

The immediate pressure on Samsung’s consumer electronics business is coming from a combination of higher component costs and weaker demand.

Memory chip prices have more than doubled, according to industry executives cited in media reports. The increase has raised input costs for manufacturers of smartphones, televisions, and other electronics.

The problem is particularly significant for Samsung because its consumer-facing businesses are being squeezed even as demand for memory chips from artificial intelligence infrastructure remains strong globally.

The Indian rupee’s decline of nearly 10% through FY26 has added another layer of pressure, making imported components and finished products more expensive.

At the same time, India’s smartphone market has weakened. Industry estimates cited in media reports indicate that smartphone volumes have declined by around 11-12% year-on-year.

Samsung has responded by raising prices on several smartphone models. The company increased prices of some models by 5-10% this month, according to media reports, as manufacturers attempt to pass higher component costs on to consumers.

Samsung consolidates India operations

The layoffs are being accompanied by changes to Samsung’s sales and office structure in India. The company is consolidating parts of its regional branch network, with offices in Ranchi and Patna, Delhi and Gurgaon, and Punjab and Chandigarh being combined, according to industry executives cited in media reports.

The consolidation is expected to make some positions redundant while reducing management layers and operating costs. Samsung had also been considering combining its television and home-appliance sales teams because the two businesses use similar distribution and trade channels. That proposed merger has now been deferred to the December quarter, according to the reports.

The restructuring follows an earlier plan to remove overlapping functions between the two businesses as Samsung seeks to improve profitability in India’s consumer electronics market.

Samsung India remains profitable despite layoffs

The workforce reduction comes despite strong overall financial performance from Samsung India. The company’s revenue from operations rose 12% to around ₹1.11 lakh crore in FY25, while net profit increased 38% to ₹11,286 crore, according to its latest filings. 

Home appliances accounted for around 11% of Samsung India’s sales, making the category its second-largest business after smartphones.

The numbers suggest that the latest layoffs are not necessarily a response to financial distress at Samsung India as a whole. Instead, the restructuring appears focused on protecting margins in businesses facing higher input costs, weaker demand, and greater price competition.