Samsung India Restructuring: 80–100 Executives Asked to Leave

Samsung India has reportedly asked around 80–100 executives to leave as it restructures its television and home-appliance businesses amid rising costs, weaker consumer demand and pressure on margins.

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According to The Economic Times and other media reports, the job cuts are being carried out in batches. Employees affected reportedly include director-level executives, headquarters team leaders, branch managers and area managers.

The current layoffs are focused on the TV and home-appliance businesses. Samsung’s smartphone division has not been included in the present round, with the company reportedly waiting to see how sales perform during the festive season.

Rising Costs Put Pressure on Business

Several factors are believed to be behind the restructuring. Memory chip prices have more than doubled, while higher raw material costs and the depreciation of the Indian rupee have added to operating expenses.

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At the same time, smartphone shipments in India have reportedly declined by around 11–12% year-on-year, adding to pressure on sales and margins.

The smartphone business, however, remains protected for now as Samsung expects festive-season demand to support sales.

The pressure comes despite Samsung India reporting strong financial performance in FY25. The company recorded revenue of more than ₹1.1 lakh crore and a net profit of ₹11,287 crore, according to reports.

The current restructuring therefore appears to be focused on specific businesses and cost structures rather than reflecting an overall decline in the company’s India operations.

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Regional Offices and Sales Roles Being Consolidated

Samsung is also consolidating parts of its regional branch network. Reports indicate that offices in Ranchi and Patna, Delhi and Gurugram, and Punjab and Chandigarh are being combined as the company reviews its sales structure.

The company had also considered combining its television and home-appliance sales teams to reduce overlapping functions and management layers. That move has reportedly been pushed to the December quarter.

The restructuring could extend beyond the current 80–100 exits. An industry executive cited in the reports said up to 25% of Samsung’s sales and marketing workforce in its electronics business could eventually be affected.

This includes direct employees as well as off-roll workers hired through manpower agencies. The 25% figure is an industry estimate and has not been announced by Samsung as an official target.

More Job Cuts Could Follow

Reports indicate that another round of workforce rationalisation could take place after Diwali, particularly in the TV and home-appliance businesses, if market conditions remain challenging.

There are no immediate plans to reduce the smartphone workforce, although that position could be reviewed depending on festive-season sales.

For HR leaders, the Samsung case highlights how restructuring can involve more than reducing headcount. Companies may also review management layers, regional offices, overlapping sales functions and the mix of on-roll and off-roll employees when costs rise.

The development also shows why workforce planning is increasingly linked to business performance at the individual business-unit level.

Even when the overall company remains profitable, specific segments facing higher costs or slower growth can come under pressure for organisational redesign.