New Delhi: Samsung India Electronics has reportedly begun a phased workforce reduction, with around 80–100 executives in its television and home appliance businesses asked to leave as the company faces rising input costs, weaker consumer demand and pressure on margins. The restructuring is being carried out in batches and is currently focused on Samsung’s consumer electronics operations rather than its much larger smartphone sales organisation.

The reported job cuts affect employees across different levels, including director-level executives, headquarters team leaders, branch managers and area managers. Some employees have reportedly received termination letters without being required to serve their full notice periods.

The move comes at a challenging time for the Indian electronics market, with higher component costs, a weaker rupee and softer smartphone volumes adding pressure to companies’ margins.

Samsung layoffs focused on TVs and home appliances

According to reports citing industry executives, the current restructuring covers Samsung India’s television and home appliance divisions. The company’s smartphone sales operations have not been included in the latest round of layoffs.

The distinction is significant because smartphones remain Samsung India’s largest revenue contributor. NDTV Profit reported that mobile phones account for roughly three-fourths of the company’s India revenue. The smartphone business is therefore being protected for now, with executives reportedly expecting stronger demand during the upcoming festive and Diwali season.

However, the television and home appliance businesses are facing a tougher operating environment. Samsung’s efforts to expand its premium air-conditioner business have reportedly not delivered the expected traction, adding to the pressure to streamline operations.

One industry executive cited in reports said as much as 25% of the sales and marketing workforce in the electronics business, including off-roll employees hired through manpower agencies, could eventually be affected. This remains a reported possibility rather than a confirmed final figure.

Rising memory chip prices add to pressure

A major factor behind the restructuring is the sharp rise in memory chip prices. According to the reports, global memory prices have more than doubled, increasing costs for electronics manufacturers and putting pressure on margins.

The depreciation of the Indian rupee has added another layer of pressure. The rupee reportedly declined by nearly 10% through FY26, making imported components and other costs more expensive for companies operating in India.

At the same time, smartphone volumes in India are estimated to have declined by around 11–12% year-on-year. While Samsung’s smartphone division has so far been kept outside the reported layoffs, weaker volumes in the broader market are contributing to pressure on the company’s overall consumer electronics business.

Samsung consolidates regional offices

The workforce reduction is also linked to a broader restructuring of Samsung India’s sales operations.

The company is reportedly consolidating overlapping branch offices in several locations. Among the combinations cited are Ranchi with Patna, Delhi with Gurugram, and Punjab with Chandigarh.

Such consolidation is expected to eliminate overlapping roles and reduce management and operating costs. Reports also indicate that Samsung has considered changes to the way its television and home appliance sales operations are organised.

The restructuring reflects a broader effort to make the company’s sales network more efficient at a time when consumer demand and margins are under pressure.

Employees reportedly offered severance

Employees affected by the latest round of job cuts are reportedly being offered a severance package comprising three months’ salary, along with an additional month’s salary for every completed year of service.

Samsung India has not publicly confirmed the reported number of affected executives. NDTV Profit said Samsung India did not respond to an email query from The Economic Times regarding the layoffs.

The reported job cuts are therefore best understood as part of a restructuring exercise rather than a company-wide shutdown or broad-based exit from the Indian market.

Samsung remains profitable in India

Despite the current pressure, Samsung India continues to operate a large and profitable business.

The company reported revenue of around Rs 1.1 lakh crore in FY25, representing a 12% year-on-year increase. Its net profit rose 38% to Rs 11,287 crore, according to Registrar of Companies filings cited by NDTV Profit. FY26 financial figures have not yet been disclosed.

Samsung has also continued to see demand for its premium Galaxy Fold and Galaxy Flip smartphones. However, smartphones priced above Rs 1 lakh account for only a small share of total volumes, estimated at around 4%.

The company’s position in India’s smartphone market has also come under pressure. Counterpoint Research data cited by NDTV Profit showed Samsung slipping from second to third place during the April–June quarter, behind Vivo and close to Oppo.

More job cuts possible after Diwali

The immediate focus remains on controlling costs in Samsung’s television and home appliance operations. However, reports suggest the restructuring may not necessarily end with the current round.

One executive cited in the reports said another round of workforce reductions could be considered after the festive season if market conditions remain difficult. For now, Samsung is reportedly keeping its smartphone sales workforce outside the cuts in the hope that Diwali demand will provide a boost.

The situation will therefore depend heavily on consumer demand during the upcoming festive season, component prices and the company’s ability to protect margins.

What Samsung’s restructuring means

The reported layoffs highlight the cost pressures facing large consumer electronics companies in India. Rising component prices, currency movements, slower volumes and intense competition can quickly affect margins even when overall revenues remain strong.

For Samsung India, the current exercise appears targeted at specific businesses and sales operations rather than representing a company-wide retrenchment. The smartphone division, which remains central to Samsung’s India business, has been spared for now.

However, the possibility of further restructuring after Diwali means the coming months could be important for Samsung’s India operations. A stronger festive season could ease some pressure, while continued weak demand may lead to further cost-cutting measures.