Samsung India Workers Strike, Amid Report Of Overseas Job Cuts

Samsung India is currently enduring one of its largest industrial clash, with workers in India boycotting work on Wednesday for the third straight day.

Reuters reported that hundreds of workers at Samsung Electronics’ southern India plant have boycotted work this week, in order to demand better wages and working conditions. The strike action is said to be disrupting output at a key consumer electronics facility for the tech giant.

Samsung has assembled products in India since 2007, and currently has two state-of-the-art manufacturing plants in India – namely at Noida and Sriperumbudur.

Strike action

Samsung in 2018 had opened the Noida plant (near the Indian capital of New Delhi), and at the time called it the world’s largest mobile phone manufacturing plant, as it sought to double its production in the world’s second biggest smartphone market.

But now Reuters reported union leaders as saying that hundreds of workers at the Sriperumbudur facility in southern India plant will remain on strike on Wednesday until their demands for better wages and working conditions.

The industrial unrest at the Sriperumbudur plant, near the city of Chennai, is one of the biggest such strikes in recent years in India, Reuters noted.

The plant reportedly makes a range of products including televisions, refrigerators and washing machines, and is said to contribute between 20 percent and 30 percent of Samsung’s annual $12 billion revenue in India.

“The strike will continue until a settlement is reached, with the next round of talks (planned) on Friday evening,” union leader E. Muthukumar told Reuters. “As things stand, the strike will continue till Friday.”

According to Reuters, on the first day of the strike on Monday, 50 percent of daily production was disrupted, while 30 percent was hit on Tuesday as some temporary workers have been brought in to keep production going.

The workers reportedly want Samsung to recognise their union, as well as increase their wages and improve their working hours.

Samsung Southwest Asia CEO, JB Park, and other senior executives have reportedly travelled to the factory to try to resolve the protests.

It comes after thousands of members of Samsung Electronics’ biggest worker union in South Korea had demanded higher wages and benefits, striking for several days in June, July and August.

Samsung did not respond to a request for comment, Reuters reported.

A spokesperson for Samsung India said on Monday that it actively engaged with workers “to address any grievances they may have and comply with all laws and regulations.”

Job cuts

Meanwhile, Reuters (citing three sources with direct knowledge of the matter) also reported that Samsung is cutting up to 30 percent of its overseas staff at some divisions.

Samsung reportedly has instructed subsidiaries worldwide to reduce sales and marketing staff by about 15 percent and the administrative staff by up to 30 percent, two of the sources told Reuters.

The plan will be implemented by the end of this year and would impact jobs across the Americas, Europe, Asia and Africa, one person said.

Six other people familiar with the matter also confirmed Samsung’s planned global headcount reduction.

It is not clear how many people would be let go and which countries and business units would be most affected.

In a statement, Samsung reportedly said workforce adjustments conducted at some overseas operations were routine, and aimed at improving efficiency. It said there are no specific targets for the plans, adding that they are not impacting its production staff.

At the end of 2023 Samsung employed a total of 267,800 people, and more than half, or 147,000 employees, are based overseas.