Samsung India Cuts 80-100 Jobs as Chip Costs Surge and Smartphone Sales Fall
Samsung India has reportedly begun cutting jobs in its television and home appliance businesses as higher memory chip prices, weaker smartphone volumes, rupee depreciation and rising costs pressure margins. A second round of layoffs could follow after Diwali.
Samsung India has started reducing its workforce in phases as rising memory chip costs, weaker smartphone demand and pressure on margins weigh on its consumer electronics business. Around 80 to 100 executives in the television and home appliance divisions have reportedly been asked to leave, according to industry executives cited in media reports.
The cuts include director-level officials, team leads, branch managers and area managers. Up to 25% of the electronics business's sales and marketing workforce, including employees hired through manpower agencies, could eventually be affected.
The company's domestic electronics sales organisation has around 550 to 600 executives, excluding its significantly larger smartphone sales workforce.
Samsung India layoffs begin in batches
Employees affected by the restructuring have reportedly received termination letters in batches over the past several days. Some have been asked to leave without serving their notice period.
The reported severance package includes three months' salary, along with an additional month's pay for every completed year of service.
The job reductions come as Samsung faces rising costs across its consumer electronics operations. Memory chip prices have more than doubled, increasing pressure on product margins at a time when demand remains subdued.
Rupee weakness adds to cost pressure
The depreciation of the Indian rupee has added another challenge for Samsung. The currency declined by nearly 10% during FY26, although it has remained comparatively stable in the current fiscal year after reaching a low in May.
The weaker rupee has contributed to higher prices for Samsung smartphones and other electronics, putting additional pressure on sales growth.
Industry estimates cited in the report suggest smartphone volumes in India have declined by 11% to 12% year-on-year. Mobile phones account for roughly three-fourths of Samsung India's local revenue, making the performance of the smartphone business particularly important to the company.
Dany is a business journalist with Annuity Outlook Magazine, with over 16 years of experience across print, digital, and wires. He covers business, technology, policy, and corporate developments, with a focus on in-depth reporting and analysis. Over the years, he has worked across multiple editorial platforms. Skilled in content creation, editing, proofreading, and overseeing print layouts, his career spans multiple editorial platforms.
