Samsung India Job Cuts: Why the Electronics Giant Is Restructuring Its TV and Appliance Business

Samsung India is facing a fresh round of cost pressures, with the company reportedly reducing its workforce in parts of its television and home appliance businesses. The move comes as rising component costs, weaker consumer demand and pressure on margins force the electronics major to reassess its operations.

According to reports, around 80–100 executives have been asked to leave so far, with the affected employees spread across different levels of the organisation. The restructuring highlights the challenges facing one of India's biggest consumer electronics companies at a time when the broader market is also dealing with higher prices and softer demand.

Samsung India Begins Workforce Reduction

The reported job cuts are being carried out in batches rather than through a single large-scale announcement. Employees affected include director-level executives, team leaders, branch managers and area managers associated with Samsung's television and home appliance operations.

Industry sources cited in reports also indicate that the impact could eventually extend further. As much as 25% of the sales and marketing workforce in Samsung's electronics business could potentially be affected, including off-roll personnel working through manpower agencies.

The company is also reviewing its branch structure as part of the cost-cutting exercise. Several regional offices are being consolidated, with locations such as Ranchi and Patna, Delhi and Gurgaon, and Punjab and Chandigarh reportedly being combined.

Such consolidation can reduce overlapping responsibilities and management layers, but it can also make some existing positions redundant.

Why Is Samsung Under Pressure?

One of the biggest challenges is the sharp increase in the cost of memory chips. Reports indicate that memory chip prices have more than doubled, putting pressure on businesses that depend heavily on electronic components.

The Indian rupee's decline through FY26 has added another layer of pressure. Higher input and import-related costs can make electronic products more expensive, potentially affecting consumer demand.

Samsung has also increased prices on some smartphone models by around 5–10%, according to the reports. Repeated price increases across the smartphone market have contributed to weaker consumer activity.

Industry estimates cited in reports suggest that smartphone volumes in India have declined by around 11–12% year-on-year, creating a difficult environment for manufacturers and retailers alike.

Smartphones Remain Samsung's Key Business

Despite the current restructuring, Samsung's smartphone division is not part of the immediate job-cut exercise, according to the reports.

That is significant because mobile phones contribute roughly three-fourths of Samsung India's revenue. The company is reportedly hoping that the upcoming festive season, particularly Diwali, will bring stronger smartphone demand and provide some relief to the business.

Samsung's premium Galaxy Fold and Galaxy Flip devices have reportedly received a positive response. However, the premium segment above ₹1 lakh still represents only a small portion of India's overall smartphone volumes.

At the broader market level, Samsung has also faced increased competition. Counterpoint Research data cited in the reports showed Samsung moving from second to third position in India's smartphone market during the April-June period, with Vivo and Oppo ahead.

TV and Home Appliances Face Their Own Challenges

Samsung's pressure is not limited to smartphones. The company has been trying to improve profitability in its television and home appliance businesses as competition intensifies and costs rise.

Home appliances represent about 11% of Samsung India's sales, making the category an important contributor after smartphones. The company has also faced challenges in expanding its position in India's high-value air-conditioner market.

Earlier restructuring plans reportedly focused on removing overlapping functions between the TV and home appliance sales organisations because both businesses use similar distribution and trade networks. The objective is to create a leaner structure while reducing unnecessary layers.

Samsung India Still Has a Large Revenue Base

The workforce reduction comes despite Samsung India reporting strong financial numbers for FY25.

The company's revenue from operations was around ₹1.1 lakh crore, representing approximately 12% growth from the previous year. Its net profit increased by about 38% to ₹11,287 crore.

These numbers suggest that the current restructuring is more closely linked to profitability, cost control and changing market conditions in specific businesses rather than indicating that Samsung is abandoning its India operations.

Samsung has also been reviewing its operations globally, with its television and consumer electronics businesses facing margin pressure even as its semiconductor division benefits from strong memory-chip demand.

Could More Job Cuts Follow?

The possibility of another round of workforce rationalisation has not been ruled out.

Industry executives cited in reports suggested that additional changes could take place after Diwali, particularly within the television and home appliance businesses. The smartphone division is expected to remain protected for the time being because Samsung is counting on festive-season demand to improve sales.

However, if the anticipated recovery does not materialise, the company could reassess its workforce requirements across other areas as well.

For Samsung India, the coming months will therefore be important. The company needs to balance higher component costs and competitive pressure with consumer demand, while making sure its cost-cutting efforts do not weaken its position in one of the world's most important electronics markets.

The Diwali sales season could provide an important test of whether India's consumer electronics demand is ready to recover—or whether manufacturers will have to continue making difficult adjustments.