Revenues of Samsung India are falling, and such is the alarming situation that they are firing employees to reduce their expenses. As per media reports, Samsung may fire 5% of their staff in India within next few months; which translates to roughly 1100 employees.
Right now, Samsung India has 22,000 employees working in various departments which include Research and Development, Software programming and blue-collar jobs such as manufacturing and logistics.
As per reports, majority of this firing will happen in various mid-level managerial positions and blue-collar jobs in manufacturing. Atleast 5 officials from Samsung have confirmed this development, as declining sales and less revenues have been attributed to this firing exercise.
Reportedly, around 90 employees from Kolkata and New Delhi have been asked to resign; whereas 140-150 employees would be asked to quit post-Diwali. 35 of the fired employees were in the post of General Manager or higher. Four senior officials of Samsung have already shifted their base in the last couple of months – SK Sharma (taxation head), Rajinder Sharma, (legal head, moved to Flipkart), Sanjay Bali, (HR head) and Vipin Tuteja, (managed Printer business).
Between December to March, 900-1000 employees would be asked to quit, in a phased manner. Performance is the criteria which would be used to filter out employees. The report said that in case performance of these ‘targeted’ employees does improve, then the firing exercise may be halted.
All those who are being asked to quit are paid 3-6 months of salary as compensation. They have already reduced the appraisal and incentive programs inside the organization.
Samsung Responds
In a reply to email, Samsung India spokesperson has said, “Based on business needs, we do reorganize our workforce to deliver optimal value to our consumers and partners in the country. We care for the well-being of all our employees and we remain committed to employing talent for continuing growth in India.”
This new ‘restructuring process’ is being carried out under current Samsung India president and chief executive officer HC Hong; who was earlier managing Latin American operations. Last week, in a letter to all mid to senior level managers across all regional and branch offices, Hong had suggested that drastic measures would be undertaken to cut costs, improve efficiency and increase revenues of the company.
Samsung has already halved their projected growth for 2015-16 to 15-20%, which was in the range of 30-40% in the last 2 years. We will keep you updated as more details come in.
In case you are an employee with Samsung, and wish to share your insights, views and comments on this news, then don’t hesitate to comment right here.
In Aug 2015 I cleared all the rounds including the salary discussion and supposed to join SRI Noida. Suddenly they called me and said you need to appear for an Online Test :-) LOL Upon asking, they said our process is changed and everyone present inside as well as waiting to join has to appear for this test. Finally I appeared and cleared the test. Even after that there is no communication on my offer letter. Now I can understand whats going on and why they are not willing to give me the offer letter :-)
Thank God I got survived. And I also I read from everywhere not even a single website or people suggesting me to join this organization. This seems to have the worst work culture. Employees are treated as slaves. Lots of politics. They conduct exam for all level employees and keep the result for such time so that they can show you your mark-sheet and say a good bye :-)
Samsung hired employees as if they were buying cattle back in 2012-13 when the sales were high. Now with the sales dropping they are mitigating this by sacking employees. This company has no vision and now they are scared they might disappear into oblivion.
60 to 70% of work force is involved in talks, process or show.. be it be services or products.. if we remove word ‘manage’ in work, every thing else would be great any where..
How long business wishes to see people and hours as $.. why not see work to be transformed to business value results as true need of any business, which wants to create wealth.
‘Creators’ at top at so low.. every one wants to manage or follow.. legacy… and be part of ma..ma.. way saying work done..
Yes this is absolutely true , that samsung has fired many people last year and the storm still continuous as i spoke with many people who are working there , It’s very hard to accept that Samsung has very large market and gain from India in-spite of that they are firing the people of this country .