Samsung Layoff: Aggressive competition from brands like Xiaomi and Vivo and disputes with offline retailers as well as the departure of key sales and marketing executives have increased Samsung’s problems. Its sales have fallen and it is in its weakest position in ten years. Now the heat of this is going to fall on Samsung’s employees and the company has decided to lay off employees.
Samsung Layoff: Samsung is facing a lot of problems in the Indian market. Its sales have fallen and it is in its weakest position in ten years. Now the brunt of this is going to fall on Samsung’s employees and the company has decided to lay off employees. Moneycontrol has received this information from sources. According to sources, the layoffs may hit the employees of sales, marketing and operations. One source even said that up to 20 percent of its employees in India may be laid off.
Executives may also be laid off
One source said that the structure of Samsung’s smartphone, consumer electronics and home appliances business is changing. Due to this, some of the company’s key executives may also be laid off. The company has currently stopped hiring and the vacant positions of executives are also not being filled. According to the source, Samsung may also reduce the number of off-roll employees.
This is happening at a time when the workers at the company’s manufacturing factory in Chennai are on an indefinite strike and it is in its third day. Due to this strike, the production of TVs, refrigerators and washing machines is getting affected before the festive season. According to the source, Samsung’s management has called the Indian team to South Korea to discuss this situation and restructuring.
How is the business health
After overtaking Xiaomi in the December 2022 quarter, Samsung once again remained the largest smartphone company in India in 2023 last year. However, according to market research firms IDC, Counterpoint, and Canalys, Samsung has slipped to third place in terms of volume in the April-June 2024 quarter. During this period, Samsung’s smartphone shipments declined by 15.4 percent, which was its third consecutive quarterly decline, and its volume market share came down to 12.9 percent. Due to this, the value market share also declined from 23 percent to 16 percent on a quarterly basis, according to IDC data, which was 21 percent a year ago.
What is Samsung’s problem?
Aggressive competition from brands like Xiaomi and Vivo and disputes with offline retailers, as well as the departure of key sales and marketing executives from the company, have increased Samsung’s problems. In the last few quarters, more than 30 senior Samsung executives in retail, marketing, and business development roles have left the company, and many of them have joined Xiaomi. According to sources, many more executives may leave the company in the coming days. The reason for the dispute with offline retailers is the huge difference in prices on online-offline stores, lower profit margins than Chinese smartphone companies, and uncertainty of stock availability of popular models.
