Technology major initiates targeted cuts in consumer electronics division, with plans to make dozens of additional roles redundant to protect margins.
Samsung India Electronics has begun terminating staff in its Consumer Electronics (CE) division as part of a broader cost-rationalisation drive aimed at offsetting escalating input expenses, a depreciating Indian rupee, and sluggish consumer demand.
The initial phase of the restructuring saw the elimination of approximately 8 to 10 mid-to-senior level management roles—spanning director, general manager, team lead, and area manager positions. Industry sources report that the company plans to make a further 40 to 50 employees redundant in the coming weeks, targeting a team of roughly 500 to 600 workers within its television, home appliance, and digital electronics units.
To streamline its regional distribution network and eliminate operational overlap, Samsung is also merging several branch offices across the country. Impacted staff are being offered severance packages consisting of three months’ base salary, alongside an additional month’s pay for every completed year of service.
The job cuts reflect wider pressures across the global electronics sector, with almost 700 jobs cuts across the US, in display, smartphone, and electronics operations in July. Samsung’s mobile division may avoid direct staff reductions ahead of expected seasonal demand during the upcoming festive period, however it is facing intense competition from Apple in the premium segment and from the Chinese vendors in the mid-range segment.
Apart from that a weakening rupee is adding to the import costs of components. Along with it a sharp rise in memory chip prices due to surge of demand in the AI sector is adding to the troubles.
Despite current headwinds, Samsung India recorded robust financial results in the previous financial year (FY25), generating over ₹1.14 lakh crore (approx.$12 billion) with consumer electronics contributing 10 per cent to 12 percent and mobile handsets covering almost 70 per cent of total sales. However, intense regional competition from rival South Korean and Chinese manufacturers, combined with wider corporate downsizing across international markets, has forced the group to reassess its local cost structure.
