Samsung India trims staff as higher chip costs strain profits

Samsung India announced a wave of layoffs that target director-level officials, team leads at its headquarters and branch managers in regional offices. The company is also consolidating locations, merging offices in Ranchi with Patna, Delhi with Gurgaon, and Punjab with Chandigarh, creating redundant positions. An executive warned that as much as 25% of the sales and marketing workforce in the electronics business, including contract workers, may be impacted.

The smartphone segment, which generates three-quarters of local revenue, is currently protected, though a second round of cuts could follow the Diwali season. Pressure stems from higher chip costs, a weak high-value air-conditioner market, and rising raw-material prices in consumer electronics. Samsung has postponed a planned merger of its home-appliance and TV sales teams to the December quarter to further cut costs.