The Chinese technology company Xiaomi is going to cut 10-15% of its employees. This is reported by the media, citing sources. Several Chinese publications were the first to write about this, according to which the company has already begun to cut employees in some divisions. According to them, reductions in individual divisions reached 75%, but in general, the company can cut up to 15% of employees.
In response to a request from Kommersant, the company said that, in fact, it had recently carried out “routine organizational and personnel optimization that affected less than 10% of the total number of employees.” “Everyone affected (by these measures) has been compensated in accordance with local regulations,” the company said.
In the first nine months of 2022, Xiaomi has already laid off 1.9 thousand employees, in September the company employed more than 35.3 thousand people. Today, December 23, the Financial Times wrote, with reference to a letter from the company’s founder Lei Jun, that Xiaomi will leave three top managers, including its president Wang Xiang. The letter, according to the publication, says that the company is currently “experiencing many difficulties”, but will continue to work on improving operational efficiency. Xiaomi, according to the FT, remains the largest smartphone maker in China. In the world, the company ranks third in this indicator after Apple and Samsung.
According to experts, staff cuts and the departure of top managers are due to the fact that Xiaomi has been facing difficulties lately. Like other Chinese tech companies, it has been negatively impacted by this year’s lockdowns, and inflation and economic instability are also weighing on demand for smartphones and other gadgets. According to the founder of the consulting company Dolphin, Li Chandong, the timing of Xiaomi’s massive cuts does not surprise him: “The results of the fourth quarter of Xiaomi may be worse than expected.” In the third quarter, the company’s net profit decreased by 59.1%, and revenue – by 10%.