Layoffs 2024: Samsung Electronics to trim 9-10% workforce in India, as consumer demand weakens, says report

Layoffs 2024: Samsung Electronics is planning to lay off more than 200 executives across various functions in its Indian operations, The Economic Times reported. The decision comes amid slowing business growth and weakening consumer demand in the country.

The layoffs are expected to impact multiple departments, including mobile phones, consumer electronics, home appliances, and support functions. Industry sources suggest that this reduction could affect approximately 9-10% of Samsung's managerial workforce in India, the report added.

According to the report, the company is offering affected employees a severance package that includes three months of salary as per their employment contract plus an additional month's salary for each year of service, the report added.
Livemint could not independently verify this news development.

The news has sent ripples through the industry, with some executives reportedly seeking opportunities elsewhere. As one rival home appliance company CEO told ET, “I have received frantic calls and resumes from Samsung India executives for jobs as some of the people who have been laid-off include senior executives as well who are ready to join us even at a substantial lower salary." 

This development coincides with ongoing labour unrest at Samsung's Chennai factory. Workers there have been on strike for three consecutive days, disrupting the production of televisions, refrigerators, and washing machines. Despite the strike, Samsung is reportedly attempting to maintain operations at 50 per cent - 80 per cent of the plant's capacity, as per the ET report.

Jobs creation opportunity

Meanwhile, an Economic Times report suggested that "by the end of the current financial year, Apple may add approximately 200,000 direct jobs, with women constituting over 70 per cent of this workforce." Government projections cited in the report indicate that each direct job "typically results in at least three indirect jobs," potentially leading to a total of 500,000 to 600,000 new employment opportunities.

Apple’s growing focus on India, as it seeks to diversify away from China, is likely to create a substantial number of jobs in the country. As highlighted in a recent report by the Economic Times, Apple's operations could generate over 600,000 jobs within India.