Samsung Electronics: The strike at Samsung India’s Chennai plant continues for the third day. Meanwhile, information has come to light that the company has started preparing for layoffs. This will affect the officers. The company has about 2000 executives in its India operations. Preparations are being made to send about 10 percent of them back home. Increasing competition and decreasing business are being blamed for this layoff.
About 200 officers may face action
A report in the Economic Times claims that there will be a reduction of about 9 to 10 percent in Samsung Electronics. This may affect 200 officers. It is being said that the company’s smartphone sales in India are continuously decreasing. Therefore, it wants to increase profits by reducing costs through this layoff. This layoff will affect all departments. Along with mobile phones, people will also be fired from consumer electronics, home appliances and support function departments.
You will be sent off after giving 3 months salary
The report also said that this can affect not only senior level employees but also junior employees. The company had recently stopped hiring. Also, no one is being hired for the vacant posts. Apart from 3 months’ salary, the company is going to give one month’s salary for every year of service to the employees who are laid off. Xiaomi has overtaken Samsung to become the first in the smartphone market. Vivo has also hurt the company’s business.
The 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, the South Korea headquarters is putting pressure on the company to reduce costs. If sales do not improve even by Diwali, the scope of layoffs may increase. 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 is continuing for the third day. Hundreds of employees have stopped working. They have gone on strike to demand better salary and working hours. Due to this, the production of TVs, fridges, washing machines has been badly affected. The company’s business has been badly affected due to this strike before the festive season. However, it is being claimed that despite the strike, 50 to 80 percent production is going on in the plant.
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