Samsung lays off 10% of its workforce in India amidst a factory strike crisis | Infinium-tech
Samsung India is going through a tumultuous phase as it is losing ground to Chinese competitors. According to The Economic Times of India, the company will lay off around 200 people, which is about 10% of its total workforce.
The announcement comes on the third day of protests at the Chennai factory, where workers are demanding better wages and working conditions.
The plant, located in Sriperumbudur, makes TVs, refrigerators and washing machines and contributes 20% to 30% of Samsung’s annual $12 billion revenue in India. The factory does not make mobile devices, so the strike will not affect smartphone production.
Reuters reported that Samsung Southwest Asia CEO JB Park visited the factory to resolve the protest. The strike will not affect smartphone production, but the removal of 200 people could impact the smartphone business as it will lead to some reshuffle at the top level of Samsung India.
Those being laid off are offered three months’ pay as per their contract and one month’s pay for every year of service. Salaries are currently far above the market average, which has required improvement because of the downturn in business.
Full details about the layoffs are expected to be revealed after the Hindu festival of Diwali, which falls on Oct. 31 this year.
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