Samsung to make staff cuts in sales, marketing functions in India: Report

Samsung faces tough times in India with a declining market share and impending layoffs amid fierce competition.

By  Storyboard18Sep 11, 2024 1:05 PM
Samsung to make staff cuts in sales, marketing functions in India: Report
A restructuring process is already in motion, with the potential for key executive departures. (Image source: Samsung Global Newsroom)

Samsung is reducing its workforce in India after a sharp drop in sales, leading to the company's lowest value and volume market share in over a decade. Layoffs will impact functions such as sales, marketing, and operations, with job losses possibly affecting up to 20% of its Indian workforce, Moneycontrol reports, citing sources familiar with the matter.

While some insiders estimate the layoffs to be in "high single digits," others suggest a more significant reduction is underway.

A restructuring process is already in motion, with the potential for key executive departures. Another source told Moneycontrol, "The numbers could go as high as 20 per cent of the Indian workforce," highlighting the depth of the cuts.

Samsung has faced stiff competition from Chinese brands like Xiaomi and Vivo, which have rapidly gained market share. Additionally, Samsung's relationships with offline retailers have soured due to pricing discrepancies between online platforms and large-format stores, lower margins compared to Chinese competitors, and uncertainty over product unavailability.

These challenges have triggered an exodus of senior executives, with around 30 high-level staff from retail, marketing, and business development leaving the company and moving to competitors like Xiaomi.

The company's difficulties are exacerbated by ongoing disputes with the All-India Mobile Retailer Association (AIMRA), which has demanded improved margins, consistent pricing, and better support.

In 2023, Samsung reclaimed its status as the leading smartphone brand in India. However, it was short-lived. According to data from market research firms IDC, Counterpoint, and Canalys, the company faced a steep decline in the subsequent months. By the second quarter of 2024, from April to June, Samsung had slipped to third place in terms of smartphone shipment volumes. It had a 15.4 percent decrease in shipments which resulted in Samsung's volume market share falling to just 12.9 percent.

Another data shared by IDC with Moneycontrol, Samsung's value market share plummeted to 16 percent in 2024, seeing a sharp decline from the 23 percent share it held in the previous quarter. This also marked a significant YoY drop from the 21 percent share in the same period the previous year.

First Published on Sep 11, 2024 11:39 AM

More from Storyboard18

Brand Marketing

WPP becomes first to integrate TikTok’s Symphony AI into marketing platform

WPP becomes first to integrate TikTok’s Symphony AI into marketing platform

Digital

OpenAI seeks to loosen Microsoft ties, eyes antitrust complaint

OpenAI seeks to loosen Microsoft ties, eyes antitrust complaint

Digital

New consent API under DPDP Act set to redefine data use rules for digital platforms

New consent API under DPDP Act set to redefine data use rules for digital platforms

How it Works

From Binge to Breaks: How ads are redefining OTT viewing in India

From Binge to Breaks: How ads are redefining OTT viewing in India

Digital

InMobi Advertising unveils mobile-first curation platform empowering all media buyers

InMobi Advertising unveils mobile-first curation platform empowering all media buyers

Digital

Instagram rolls out real-time Spotify sharing, profile grid reordering

Instagram rolls out real-time Spotify sharing, profile grid reordering

Brand Makers

Meta names Arun Srinivas as the Managing Director and Head for India

Meta names Arun Srinivas as the Managing Director and Head for India

How it Works

Indian Ed-Tech vs. Google: High Court clears path for billing dispute

Indian Ed-Tech vs. Google: High Court clears path for billing dispute