Amidst the indefinite strike at Samsung's production plant in Chennai, the Korean electronics major has decided to layoff 200 people in its Indian business. This job cut is going to affect executives across various business functions. This restructuring is owed to the lower consumer demand followed by slow business growth. As per the exclusive information shared with Economic Times, there have been various other issues with the dip in business like losing its market share in cash cow business of smartphones.
As per the report, the lay-offs will affect 9-10% of its workforce from mobile phones, consumer electronics, home appliances and support functions.
As per the report, workers in Samsung's Chennai factory are on indefinite strike affecting the production of TV sets, refrigerators and washing machines. This is going to give a major blow to the company since there is going to be huge demand in the run-up to the festive season. The company is going to manage the Chennai plant with production at around 50-80% of its productivity.
It is being said that the brand is soon going to merge some of its business divisions like television and home applicances which is going to lead to more job cuts.
