Samsung Electronics reportedly started terminating the services of executives which may go up to around 200 executives in India across verticals because of declining business growth. The report has been published inEconomic Times citing four unnamed senior industry executives aware of the development.
The reduction in headcounts will be in the consumer electronics, home appliances, mobile phone, and support departments. This represents approximately 9–10% of the overall administrative staff of about 2,000 executives, report claims.
This may happen around the festive season and when workers at a Chennai plant went on an indefinite strike, affecting the manufacturing of refrigerators, televisions, and washing machines, though being run at 50-80% operational capacity.
Also read – Servotech Power Systems Appoints Digvijay Kapoor as Vice President of HR
“The separation process has started and may increase after Diwali if the company is not able to get a substantial share of the sales,” a senior industry executive said.The employees being terminated are being offered three months of salary as per their employment contract and a severance package of one-month salary for every year of service, the report added.
The chief executive officer of a rival home appliance company said as per the report that he has received “frantic calls” and resumes from Samsung India executives for jobs as “some of the people who have been handed over pink slips include senior executives as well who are ready to join us even at a substantially lower salary.”
Under their employment contracts, those who are terminated are given three months’ pay in addition to a severance package that includes one month’s pay for each year of employment with the company.
The report claimed that Samsung is planning to restructure its operations which may include merger of certain business divisions like the television and home appliances. This may increase the number of head count reduction, the executives said as per the report and the move aims to cut management layers, manpower, and overheads and reduce inefficiencies. The final decision will be taken after Diwali festival regarding the same, the report added.
Stay connected with us on social media platforms for instant updates click here to join our LinkedIn, Twitter & Facebook
