On Monday, Samsung’s employees working at the company’s manufacturing plant in Sriperumbudur went on an indefinite strike demanding a pay rise and equal pay. Now, more bad news is coming out about Samsung India.
According to a new report from The Economic Times, Samsung India is going to lay off more than 200 employees. That’s 10% of the company’s total managerial workforce of around 2,000 executives.
Reportedly, Samsung’s growth in India is slowing down as consumer demand in the country is decreasing. That’s affecting the company’s sales and therefore, its profits. To maintain the latter, it is trying to reduce costs by laying off 200 employees.
The publication says that the South Korean tech giant is giving three months of salary to the people that it is laying off, as per their employment contract, as well as a severance package of one month's salary for every year of service in the organization.
This step is also a course correction for high salaries
According to the report, at Samsung, the salaries of junior and mid-level employees skyrocketed in the last few years since the company started growing at a double-digit pace.
A senior industry executive said “The salaries were almost double of market salaries. This has necessitated a course correction since business has slowed down considerably. There is a clear push from Seoul headquarters to reduce costs in Indian operations. The lay-off process has started and may increase after Diwali if the company is not able to get a substantial share of the sales.”
The story continues after the video…
That's not all. Samsung has reportedly stopped hiring more people. A CEO of a rival home appliance company said that he is being flooded with calls and resumes from Samsung India employees for jobs. According to him, some of the people the South Korean tech giant laid off include senior executives and they are ready to join other companies at a substantially lower salary.
