Samsung is going through a turbulent time in India; Because it is in intense competition with Chinese competitors. According to The Economic Times of India, Samsung is laying off about 200 people (about 10 percent of its workforce) in India.
The dismissal of the workers takes place three days after their strike at the Chennai factory; Where workers demand more pay and better working conditions.
The Chennai plant, located in Sriperumbudur, manufactures TVs, refrigerators and washing machines and accounts for 20-30 percent of Samsung’s $12 billion annual revenue in India. This factory does not produce phones; Therefore, the labor strike will not affect the production of smartphones.
Reuters reported that JB Parkthe CEO of Samsung’s Southwest Asia branch, traveled to India in an effort to resolve the strikes. The strike itself may not affect smartphone production; But the dismissal of 200 people may affect Samsung’s phone business in general; Because it will definitely lead to some developments at the top levels of Samsung India.
People who are fired will receive three months salary according to their contract. In addition, they are paid one month’s salary for each year of service as a severance bonus.
