The Chinese smartphone maker says it has implemented a process of “optimizing personnel and streamlining the organization”.
Xiaomi Corp, one of China’s largest smartphone makers, has begun mass layoffs, cutting up to 15% of its workforce, a Hong Kong-based newspaper reported, citing Chinese social media and social media posts.
Social media platforms such as Weibo, Xiaohongshu and Maimai have been flooded with posts by laid-off employees, with layoffs taking place in some of the company’s internet and smartphone services business units. company, the South China Morning Post reported on Tuesday.
Xiaomi has 35,314 employees as of September 30, the newspaper reported, the majority of them based in mainland China.
The layoffs, if confirmed, will affect thousands of workers, many of whom recently joined the company after a massive hiring spree that began last year.
A spokesperson for Xiaomi did not directly comment on the reported layoffs but said the company has undergone regular streamlining.
A Xiaomi spokesperson told Al Jazeera: “Xiaomi recently performed regular HR optimization and organizational streamlining, with affected parties totaling less than 10% of the total workforce. “The affected people have been compensated according to local regulations.”
The reported layoffs come just months after the smartphone maker announced a bold plan to challenge Apple’s dominance in the premium smartphone space.
In February, Xiaomi CEO Lei Jun said Xiaomi is in a “war” with Apple and aims to become China’s largest luxury brand in the next three years.
In November, Xiaomi reported a 9.7% drop in Q3 revenue amid China’s implementation of harsh “non-COVID” pandemic restrictions and weakening consumer demand. Revenue from smartphones, which account for 60% of total revenue, fell 11% year-on-year, Xiaomi said.
Xiaomi had a sales spike in 2021 as sanctions imposed by Washington hampered Huawei Technologies’ business in the United States, before reporting quarterly revenue declines for the first time in October. Five.
With Xiaomi’s share price down nearly 50% since the start of the year, the company has been looking for new areas for growth. Those efforts include a foray into electric vehicles, with mass production expected to begin in 2024.