Samsung has long been a household name, celebrated for its diverse range of smartphones and other electronic items catering to budget-conscious and premium consumers. However, despite its impressive market presence, the Korean giant has been facing stiff competition in one of its key markets – India.
For the last few months, news has been making rounds about Samsung taking drastic steps to reduce its workforce in India. These layoffs are expected to affect approximately 30% of the company’s workforce, spanning the smartphone, consumer electronics, and home appliances divisions.
The severity of the situation can be understood from the fact that over the past six months, Samsung India has lost around 30 senior executives who have either been laid off or have left the company to join rivals.
Surprising, isn’t it?
The wave of executive departures began in February 2024 when Kunal Agarwal, Samsung India’s Senior Director and Head of Sales, Operations, and Planning, moved to Xiaomi India as Deputy Sales Head.
Agarwal’s exit was a significant loss for Samsung India and marked the beginning of a broader trend. Following his departure, 20-30 more executives across sales, marketing, and operations roles at the regional level also left Samsung’s Indian unit. And guess what, a majority of these executives have joined Xiaomi.
What’s even more surprising is the fact that Samsung has not just halted all new hiring but has also left positions which are vacated due to the departure of exiting executives unfilled. And if all that isn’t surprising enough, plans are underway to reduce the number of off-roll employees, which suggests a broader cost-cutting strategy.
It is worth noting that Samsung’s existence and growth in India largely depend on the performance of its Mobile division. A whopping 71% of Samsung India’s revenue, totalling ₹70,292 crores in FY23, came from its mobile business, up from 67% YoY. In comparison, home appliances, the second-largest segment, accounted for 12% of the company’s total revenue, amounting to ₹11,844 crores. The fact that top executives from Samsung India are leaving for Xiaomi suggests – on the condition of anonymity – there may be significant challenges and shuffling within its mobile division. Even a few of them believe that it’s an uphill battle for Samsung to reclaim its dominant position.
This dramatic shake-up raises a series of questions:
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It remains to be seen if Samsung can leverage substantial discounts and enticing offers to achieve record-breaking sales in India’s smartphone and electronics markets. Or, will it meet the same fate as LG!!
