Samsung India: Strike continues in Samsung, company is preparing for layoffs, big officials will take action
Samsung Electronics: The strike at the Chennai plant of Samsung India continues for the third day. Meanwhile, information has come to light that the company has started preparations for layoffs. This is going to affect the officers. There are about 2000 executives in the company’s India operations. Of these, preparations are being made to send about 10 percent back home. Increasing competition and decreasing business are being held responsible for this layoff.
Nearly 200 officers may face punishment
A report in Economic Times has claimed that there will be a cut of about 9 to 10 percent in Samsung Electronics. This may affect 200 officers. It is being said that the sales of the company’s smartphones are continuously decreasing in India. Therefore, through this layoff, it wants to increase profits by reducing costs. This layoff is going to affect all departments. Along with mobile phones, people will also be laid off from consumer electronics, home appliances and support function departments.
Will be sent off after paying 3 months salary
It has also been said in the report that it can affect senior level as well as junior employees. The company had recently stopped hiring. Also, no one is being taken on the vacant posts. In addition to 3 months’ salary, the company is going to give one month’s salary for every year of service to the employees who are retrenched. Xiaomi has overtaken Samsung and achieved the first position in the smartphone market. Vivo has also hurt the company’s business.
Scope of layoffs may increase after Diwali
According to a senior official, the salary package of junior and mid-level employees had increased rapidly in the last few years. The company’s business was booming. Now due to declining sales, pressure is being put on the company from the South Korea headquarters to reduce costs. If there is no improvement in sales even by Diwali, the scope of layoffs may become larger. Apart from this, the company is also considering merging businesses like TV and home appliances under restructuring. This can also become a major reason for layoffs.
Production of TV, fridge, washing machine reduced due to strike
On the other hand, the strike at Samsung India’s Chennai plant is also increasing. The strike, which started on Monday, continues for the third day. Hundreds of employees have stopped working. He has gone on strike to demand better salary and working hours. Due to this, the production of TV, refrigerator, washing machine has been badly affected. Due to this strike before the festive season, the business of the company has been adversely affected. However, it is being claimed that despite the strike, 50 to 80 percent production is going on in the plant.
