Samsung to lay off 1,000 in India

India is proved to be the next battel ground for the Chinese and Korean technology giants apart from the American companies. Now, a question arises on who can bear the maximum benefit to the buyer’s kin terms of price and quality. It hardly matters on who provides the best security.

The telecom industry is at a nascent stage in 5G technology development. This disruptive technology holds a promising economic value that can lead to a hyper-connected' society, where mobile will play a significant role in people's lives. Every government is talking about the growth into the space of 5G . The governments of Japan, South Korea, the U.S., and China have also been particularly active in pushing the rollout of 5G technology by the end of 2019. The global 5G market is expected to reach $277 billion by 2025 at a CAGR of 111% during 2019-2025.

The Chinese mobile manufactures has taken the best use of the scheme driven by Government of India. Chinese mobile phones including Xiaomi, Vivo, MI, Oppo, OnePlus and Realme. took over the Indian market. With the growing competition by the Chinese and other brands , SAMSUNG has faced the heat of competition. Now SAMSUNG has decided to lay off about 1,000 jobs in India as the brutal war with Chinese companies forces the Korean giant to cut prices of smartphones and televisions, shaving off margins and reducing its profits. The layoffs in the network division are aimed at building the team for 5G in India since they currently focus on 4G.

Sources said, the job cuts were part of a cost rationalisation programme undertaken by the country’s largest consumer electronics and mobile phone maker by revenue. Samsung has already laid off 150-odd employees at its telecom networks division and will complete the entire manpower rationalisation exercise by October.

A Samsung India spokesperson said the company is committed to India and continues to invest significantly across its businesses. This includes setting up the world’s largest mobile phone factory, investing in R&D and exploring new businesses such as 5G networks, he said.

“As we grow, our efforts are leading to more job creation. At the same time, we continue to make our business more efficient and robust for long-term success. For which, Samsung continuously realigns resources as per business priorities. Samsung is committed to job creation and will add manpower through the year,” the spokesperson said.

“As regards business, with new products across categories, we have been able to consolidate our market share further, and 2019 will be a record year for the company,” the Samsung India spokesperson added.

As per Counterpoint Research, Xiaomi has 43% share in online smartphone sales as of January-March, followed by Samsung at 15% and Realme at 11%. In the overall smartphone market, Xiaomi again led with 29%, Samsung at 23% and Vivo at 12%, the researcher said. Industry executives said Samsung is the largest player in the overall TV market with around 30% share.