Korean technology giant Samsung is reportedly going to sack 1,000 employees in India to cut costs as it is faced with stiff competition from Chinese companies. The consumer electronics major is doing it to rationalise costs by cutting the prices of its smartphones and televisions, trimming margins and curtailing its profits.
Samsung has already sacked 150-odd employees at its telecom networks division and will conclude the entire manpower rationalisation exercise by October, reports said. The entire exercise will encompass sales, marketing, R&D and manufacturing, finance, human resources and corporate relations.
Several under-performers and those not delivering targeted results in their teams have already been reported by the business heads. The report further says that the list constitutes about 10% of the total team strength across some businesses and functions, however, there is no fixed number.
As per the industry evaluations, the Korean giant at present has 20,000 employees in India. The job cuts have been agreed upon by Samsung's headquarters in Seoul which now wants to emphasise more on generating profit growth instead of revenue from India.
Meanwhile, a Samsung India spokesperson told BusinessToday.In that the company is resolute in its commitment to India as it continues to invest significantly across its businesses in the country.
"In the past one year, we have generated 2,000 new jobs at Samsung. Samsung India's business continues to grow and expand, hence we will hire more talent across businesses through the year. As we contribute to job creation, we continuously realign resources as per business priorities to make our business more robust and efficient for long term success,. the spokesperson said.
"Samsung is committed to India and continues to invest significantly across its businesses. We have demonstrated our commitment by building the World's Largest Mobile Factory in Noida, investing in local R&D and we are exploring new businesses such as 5G Network, among others,"he further added.
"As regards business, with new products across categories, we have been able to consolidate our market share further, and 2019 will be a record year for the company," he added.
The tech giant had frozen its hiring activities since April which it will evaluate later depending on its financial performance during the upcoming festive season, the report said.