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Samsung India is said to have planned to dismiss more than 200 employees in its executive capacity in the fields of mobile phones, consumer electronics and home appliances. This decision, due to reduced business expansion and weak customer demand, will impact approximately 9 to 10 % of its managerial employees, as stated by the reports.

The dismissals which involve some top officials include the following: it is accompanied by a severance package which is three months’ pay plus an extra month of pay for every completed year of service. This has led to a rise in the number of applications from laid-off Samsung executives to other firms, a CEO of a rival home appliance firm said.

Adding to these problems, the workers of Samsung’s Chennai factory are on an indefinite strike for the third day now. The strike which started on September 9 has affected the manufacturing of consumer durables like television, refrigerator, and washing machines. About 50% of the factory output has been impacted, and many workers have been absent from their duties.

The timing of the strike is very strategic as it is to be held before the onset of the festive season in India, which is a good time for consumer electronics. Even though Samsung tried to keep production at 50-80% during the strike, it has altered the company’s ability to increase production during this important sales period.

Samsung India is also planning a revamp of the company structure, and this may include integration of some business segments, for instance television and home appliances.

Such a restructuring might result in more dismissals since the company seeks to cut management levels, human resources, and overheads for increased productivity. It is planned to decide the final structural changes to this reorganization after Diwali.