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Memory Chip Costs Rise, Samsung India Begins Executive-Level Job Cuts

New Delhi : Samsung India has started trimming its workforce in its television and home appliance businesses as a combination of rising costs, weaker consumer demand and a broader restructuring puts pressure on the electronics giant’s India operations. The layoffs are being carried out in batches and affect employees across different levels, including director-level officials and team leads at the headquarters, as well as branch and area managers.

The move comes at a challenging time for Samsung’s India business. Memory chip prices have more than doubled, while the Indian rupee’s decline, weaker smartphone volumes and higher raw material costs have added to pressure on sales and margins. One industry executive cited by ET said up to 25% of Samsung’s sales and marketing workforce in its electronics business could be affected.

Samsung is offering three months’ salary along with an additional month’s pay for every year of service as severance, according to the report. The company has been dealing with sharply higher memory chip prices, while the rupee’s nearly 10% decline through FY26 has made smartphones and other electronic products more expensive. That has come at a time when India’s smartphone market itself is weakening. Industry estimates cited in the report put the decline in smartphone volumes at 11–12% year-on-year.

The company has also struggled to expand its presence in the high-value air-conditioner segment despite making aggressive efforts this year. Higher raw material prices have added further pressure on its consumer electronics business. The reason is straightforward: smartphones remain Samsung’s biggest business in India, and the company expects demand to improve during the upcoming Diwali season. Samsung’s premium Galaxy Fold and Flip smartphones have also received a good response, although the overall market for smartphones priced above Rs 1 lakh accounts for only around 4% of volumes.

The company’s total revenue stood at Rs 1.1 lakh crore in FY25, up 12% from the previous year, according to its latest filings with the Registrar of Companies. Home appliances contributed around 11% of Samsung India’s sales, making them the company’s second-largest category after smartphones. The latest job cuts therefore reflect the pressure on specific businesses and the company’s effort to control costs rather than a collapse in its overall India operations.

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