With business slowing down and workers demanding rise in pay, Samsung announces layoff for about 200 employees
We recently covered some latest layoff decisions by popular brands. With the current market dynamics and constantly evolving AI trends, many brands are being seen laying off employees at a frequent rate.
In the latest development, reports state that Samsung India plans on laying off more than 200 employees. The move comes amidst an indefinite strike that was announced by workers on Monday, at Samsung’s manufacturing plant in Sriperumbudur. The workers demanded a pay rise and equal pay. 200 employees of Samsung India amount to about 10% of their total managerial workforce.
Reports are suggestive that Samsung is lately witnessing a growth decline with the decrease of consumer demands. The popular electronics brand is experiencing a period of unprofitable sales. Thus, to further enhance their profits, Samsung has now decided to lay off about 200 employees.
According to reports, the company will reimburse three months of salary to the employees to be laid off. Along with it, the employees to be laid off will also receive a severance package of one month’s salary for all the years that they provided their service.
Furthermore, Samsung with this decision is trying to initiate a course correction for high salaries. According to a senior industry executive, Samsung’s salary amounted to double of market salaries. Thus, with business slowing down, the company needs a course correction. The executive further states that the company’s headquarters in Seoul, South Korea, is pressurizing to reduce costs for Indian operations. The executive also emphasized that if Samsung doesn’t meet their aimed substantial share of the sales, they might resort to more layoffs.
