Samsung Faces Strikes In India, Amid Reports Of Global Layoffs

Workers at a Samsung Electronics plant in the Indian state of Tamil Nadu have been on strike since Monday, disrupting production as they fight for wage hikes, better hours, and an end to a no-union policy.

The plant, located in the Kanchipuram district has been in operation for 16 years and employs 1,700 workers – only 60 of whom are women.

"For 16 years these workers have been without a registered union. Attitude, bureaucratism, abusive practices and workload impositions of the current management have prompted the workers to unionize," the Centre of Indian Trade Unions (CITU) wrote in a statement [PDF]. On Facebook, CITU labelled Samsung's opposition to unions "draconian."

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Many of the workers at the facility reportedly have not shown up for work. Some are instead protesting in front of the facility, causing production to fall by half on Monday. On Tuesday, production was reportedly down by 30 percent.

The facility reportedly makes products such as televisions, refrigerators and washing machines, and contributes between 20 and 30 percent of Samsung's annual India revenue – a figure which totals $12 billion.

The region's union leader, E Muthukumar, has reportedly pledged the strike will go on until a settlement is reached – and at least until scheduled Friday night talks. Senior execs have travelled to India to engage with the workers.

Samsung operates two plants in India – a larger one that focuses on smartphone manufacturing is located in Noida.

The chaebol has told other media outlets it actively engages with workers to address any grievances they may have, and complies with all laws and regulations.

"We will also ensure that there is no disruption to our consumers," Samsung promised.

The manufacturing giant has faced strikes in other countries as well. In July and August, workers in South Korea went on the most polite strike ever, using their own holiday time to stop work. More aggressive measures followed, including Samsung's first ever walk-out. The union pledged that the strike would go on indefinitely, but eventually told its members to return to work when negotiations broke down.

Reports of wider layoffs

While it deals with its Indian troubles, Samsung is also reportedly prepping for sweeping global layoffs that could see staff numbers reduced by up to 30 percent in certain departments.

Unnamed Samsung insiders told newswire Reuters that the cuts will allegedly take place by the end of this year and would affect jobs globally. The outfit has allegedly already directed subsidiaries to reduce sales and marketing staff by 15 percent, and administrative employees by up to 30 percent.

The report doesn't make it clear how many employees will be affected, or what sort of workers are at risk.

It is unclear why Samsung – which is riding high amid the AI chip boom and recording booming profits – would choose to shed some of its 260,000-strong global workforce.

According to sources who spoke to Reuters, job cuts will shore up Samsung's bottom line and reduce costs ahead of an expected global economic slowdown.

Samsung claimed the layoffs are just routine workforce adjustments aimed at improving business efficiency, no particular roles are being targeted, and production staff won’t be impacted.

Tech industry layoffs have continued to make headlines in 2024, with many high-profile companies shedding staff despite posting record financial results. It's not clear if that's what's happening at Samsung. We've contacted the firm's reps with questions for this story, but have not received a response at the time of writing. ®