Samsung Faces Major Workforce Reductions in India Amid Declining Sales and Market Share

Samsung has envisaged the next round of job cut at its India operations while the company’s sales and market share are both dwindling. This is part of top management restructuring activities that are currently being implemented in products such as smartphone, consumer electronics, home appliance segments; may also see resignations of key executives and suspension of new recruitment.

Turbulences facing the company in India go beyond the poor sales figures that have been discussed above. Samsung has lost almost 30 of its distinguished executives in the recent quarters with most of them moving to Xiaomi. Moreover, there have been unbalanced relationships with the offline stores which have made the situation worse. Some concerns for retailers include; variation of prices between its online and traditional physical store platform, reduction in profit margins, issue of stock availability especially with an increase coming before the festive season. Samsung mobiles continues to under threat from these grievances taken to its corporate leadership by the All-India Mobile Retailer Association (AIMRA) demanding better margins, consistent mobile Smartphone pricing by the company, and better sales support.

Samsung’s market position has also decline. As we have seen the company managed to regain the leading position in India’s smartphone market in late 2022 but has since declined to occupy the third place with a market share of 15%. On this parameter, the company has come up with a forecast of 4% decline in its shipment volume in the April-June 2024 quarter. In terms of volume its market share declined to 12 per cent. 9% and the value market share reduce to 16% from 23% of the previous quarter.

In addition to these pressures it faced a three-day strike by workers at the company’s manufacturing facilities in Chennai just before the festive season affected output of some of the major consumer electronics. On the same note Samsung India focused on employee care and enough assurance to clients much as they faced these disruptions.