It’s raining resignations in Samsung India

Samsung’s new president HyunChil Hong regime is witnessing a massive makeover at Samsung. However, some unhappy aspects have led to the resignation of Samsung India’s top four executives. As per a news report by The Economic Times, the heads of four divisions and functions at Samsung India have quit over the past month.

Having replaced the company's long-serving CEO BD Park, Hong had aimed at accelerating growth. Assuming the office four months back, he has merged marketing functions such as those related to product advertising and below-the-line marketing activities with the sales team to ensure better coordination.

Tarun Malik, director and head of digital content, cloud and media solution centre, which builds applications and develops content for Samsung's smartphones and smart televisions, has resigned. Sachin Thapar, director for the tablets business, quit three weeks ago and joined an American smartphone startup InFocus Mobiles as its India head.

Sandeep Bhushan, who was director, go-to-market strategy, of the mobile phone business has also resigned. A Samsung India spokesperson said the company had built a solid foundation in the Indian market because of an exemplary talent pool.

As per the news report, some have left because their roles were substantially reduced, while others were unhappy with the organisational changes.

A senior industry executive, who didn't want to be named told the ET, Hong had taken charge of Indian operations at a critical time with Samsung's smartphone business under pressure globally and revenue growth in India in 2014-15 having slowed by more than half over the previous fiscal. Samsung India sales grew 45% to Rs 40,392 crore in 2013-14. Most of Hong's initiatives are centred on the company's smartphone business, which accounts for almost 70% of revenues.

"Hong is re-organising the Indian operations and tough calls are being taken. He is a thorough sales professional. There is a lot of emphasis on cutting costs and driving profit," the executive told the financial daily.

(Image: Reuters)