Samsung to Cut Jobs in India

Due to the slowdown in sales this year, Samsung will reduce costs by cutting almost 5% of its workforce in India.

According to senior industry officials, the lay-offs will include both managerial level executives as well as factory and blue-collar workers. Some 90 employees were sacked last week, and another 125-150 employees, about 35 of whom are managers, will be asked to leave with a 3-6 months’ salary compensation after Diwali, Indian’s well-known annual religious festival. A total of up to 1,000 employees are likely be “shown the door” in a phased retrenchment in December and next March. Currently, there are 22,000 employees in Samsung India.

Samsung India president and chief executive officer, HC Hong, explained the need to restructure the business, including layoffs, saying the moves are aimed at “rightsizing the company and improving efficiency and profitability”.

Samsung India’s sales are below target due to a slowing market and increased competition across businesses. It is hoping for a revival with Diwali around the corner. The October-December quarter accounts for 30-40 per cent of the company’s annual sales.

Source: http://economictimes.indiatimes.com/

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