Samsung Electronics’ decision to freeze employee salaries at its headquarters in South Korea is not likely to have any impact on employees in India.
Samsung Electronics will freeze employee salaries for the first time since 2009, a spokeswoman for the South Korean company was quoted as saying in a report from an international news agency.
However, Samsung India’s spokesperson said the development was ‘not related’ to the business in India. “Every employee is eligible for bonus, based on his or her performance. However, we do not provide details,” a Samsung India spokesperson said in an email. Samsung sells products like smartphones, durables, appliances, televisions and B2B solutions in the country. It has around 45,000 direct and indirect employees in India.
In earlier reports, it was mentioned that Samsung’s smartphone market share went down by two percentage points in the recent quarter due to stiff competition from Apple and online exclusive brands like Xiaomi and Motorola. In India, the company has around 25,000 employees. The salary freeze in South Korea comes after the company’s profit declined in 2014 for the first time in three years as its lead in smartphones was challenged by Apple.
The last time Samsung Electronics froze salaries was when the company reeled under the global financial crisis, the report added. Samsung began its operations in India through its manufacturing complex located at Noida and opened its second manufacturing facility at Sriperumbudur, Tamil Nadu. Samsung India has two research and development centres at Delhi and Bangalore.
