Samsung is reportedly preparing to lay off a significant portion of its Indian workforce following a steep decline in sales and market share. According to a MoneyControl report, the company’s Indian operations are expected to see job cuts across multiple departments, including sales, marketing, and operations. Sources suggest that up to 20% of Samsung’s Indian workforce could be affected, as the company experiences its lowest market share in the country in a decade.
In addition to the layoffs, Samsung has been undergoing a major restructuring across its smartphone, consumer electronics, and home appliance divisions. These changes could result in the exit of key executives and a reduction in its off-roll workforce. Fresh hiring has also been paused as the company navigates this challenging period.
Samsung's troubles in India go beyond declining sales. Over the past few quarters, the tech giant has lost up to 30 senior executives in retail, marketing, and business development, with many defecting to its chief competitor, Xiaomi. Sources indicate that more executive departures may be imminent, further destabilising the company’s leadership.
Adding to the pressure, Samsung has faced unresolved issues with offline retailers, including differential pricing between online platforms and large-format stores, reduced margins compared to Chinese competitors, and inconsistent availability of popular models. These challenges have created friction with retailers and contributed to a build-up of inventory ahead of the critical festive season.
The All-India Mobile Retailer Association (AIMRA) has escalated concerns, sending multiple letters to Samsung’s President and CEO of South-West Asia, JB Park, and Corporate Executive Vice President of the Mobile Division, Soon Choi. The association demanded better margins, consistent pricing across channels, the withdrawal of selective upgrades, improved sales support, or price cuts to ease business operations. However, these issues remain unresolved, further straining Samsung's relationship with its retail partners.
Samsung's market position has also seen significant shifts. After reclaiming its title as the top smartphone brand in India in 2023, overtaking Xiaomi in the December 2022 quarter, the company has since lost momentum. According to market research firms IDC, Counterpoint, and Canalys, Samsung dropped to third place in terms of volume in the April-June quarter of 2024. During this period, the company’s smartphone shipments fell by 15.4%, marking its third consecutive quarterly decline, with its volume market share plunging to 12.9%.
The company’s value market share has also taken a hit, dropping to 16% from 23% in the previous quarter and 21% a year ago, according to IDC data obtained by MoneyControl.
Samsung’s Chennai manufacturing plant has further compounded the company’s woes, with workers striking for three days, disrupting the production of televisions, refrigerators, and washing machines ahead of the festive season. On the strike, a Samsung India spokesperson said, "At Samsung India, the welfare of our employees is our top priority. We actively engage with our workers to address any grievances they may have and comply with all laws and regulations. We will also ensure that there is no disruption to our consumers."