Declining sales and vanishing profits has forced Samsung’s hand to lay off 5% of its Indian work force. Samsung employs about 22,000 people in various posts in India and 1100 will lose their job in a phased manner. The job cut will impact the R&D, programming, manufacturing and logistics department.
90 people have lost their job immediately and Samsung has asked about 150 employs to resign after Diwali during which it expects a spike in demand for its products. The rest of the marked people will be relieved between December and march. This mid-level reorganization come as Samsung’s quest for profitability is still in question. 35 people who were in the post of general manager or higher have lost their job in this process.
Samsung has said that they care for the employees in whatever position they server the company and they will compensate the fired employees with 3 to 6 months’ salary as a relieving incentive. The perks and incentives have been greatly reduced inside the organisation. We have questioned Samsung about this reorganization and it said the following words.
“Based on business needs, we do reorganize our workforce to deliver optimal value to our consumers and partners in the country. We care for the well-being of all our employees and we remain committed to employing talent for continuing growth in India.”
With gloomy projection of the future, Samsung is trying all that it can to make a difference in the Indian sub-continent. Samsung is still the king of smartphones sales in India with a 42% market share but Chinese and local manufacturers are tearing into its sales in the cut throat competitive market.