Samsung is said to reduce its workforce by 5% in India over the next few months according to the latest report. The lay offs will mainly affect the managerial-level executives and factory and blue-collar workers.
The South Korean smartphone maker is said to take the tough decision in order to reduce costs due to slowing sales, added the report. Going forward, Samsung has apparently asked 90 employees to resign with immediate effect last week and another 125-150 employees will be asked to leave after Diwali, the officials told publication. The new ‘restructuring process’ is being carried out under current Samsung India president and chief executive officer HC Hong.
Currently, there are about 22,000 employees in Samsung India, including workers at the company’s two factories. With the latest lay offs in pipeline, the company is on the verge of slashing 750 to 1,000 employees unless their performance improves. Four senior officials of Samsung have already shifted their base in the last couple of months – SK Sharma (taxation head), Rajinder Sharma, (legal head, moved to Flipkart), Sanjay Bali, (HR head) and Vipin Tuteja, (managed Printer business). The report stated that Samsung’s latest moves are aimed improving efficiency and profitability so that the Indian operations can contribute more to global earnings.
“Based on business needs, we do reorganise our workforce to deliver optimal value to our consumers and partners in the country. We care for the well-being of all our employees and we remain committed to employing talent for continuing growth in India.”
a Samsung India spokesperson told the publication over an email.
Samsung has been facing a tough competition in India from a number of Chinese smartphone makers like Xiaomi, Lenovo and others that are flooding the low to mid range markets with an array of devices.