Samsung to make staff cuts in sales, marketing functions in India: Report

Samsung is reducing its workforce in India after a sharp drop in sales, leading to the company's lowest value and volume market share in over a decade. Layoffs will impact functions such as sales, marketing, and operations, with job losses possibly affecting up to 20% of its Indian workforce, Moneycontrol reports, citing sources familiar with the matter.

While some insiders estimate the layoffs to be in "high single digits," others suggest a more significant reduction is underway.

A restructuring process is already in motion, with the potential for key executive departures. Another source told Moneycontrol, "The numbers could go as high as 20 per cent of the Indian workforce," highlighting the depth of the cuts.

Samsung has faced stiff competition from Chinese brands like Xiaomi and Vivo, which have rapidly gained market share. Additionally, Samsung's relationships with offline retailers have soured due to pricing discrepancies between online platforms and large-format stores, lower margins compared to Chinese competitors, and uncertainty over product unavailability.

These challenges have triggered an exodus of senior executives, with around 30 high-level staff from retail, marketing, and business development leaving the company and moving to competitors like Xiaomi.

The company's difficulties are exacerbated by ongoing disputes with the All-India Mobile Retailer Association (AIMRA), which has demanded improved margins, consistent pricing, and better support.

In 2023, Samsung reclaimed its status as the leading smartphone brand in India. However, it was short-lived. According to data from market research firms IDC, Counterpoint, and Canalys, the company faced a steep decline in the subsequent months. By the second quarter of 2024, from April to June, Samsung had slipped to third place in terms of smartphone shipment volumes. It had a 15.4 percent decrease in shipments which resulted in Samsung's volume market share falling to just 12.9 percent.

Another data shared by IDC with Moneycontrol, Samsung's value market share plummeted to 16 percent in 2024, seeing a sharp decline from the 23 percent share it held in the previous quarter. This also marked a significant YoY drop from the 21 percent share in the same period the previous year.