Xiaomi Corp has started laying off workers in several units of its smartphone and internet services business, reducing its workforce by about 15%, the South China Morning Post reported on Tuesday.
The Hong Kong newspaper cited social media posts by affected employees and local Chinese media, saying China’s social media platforms, including Weibo, Xiaohongshu and Maimai, have been flooded with posts about the job cuts.
Xiaomi had 35,314 staff as of Sept. 30, the paper reported, with over 32,000 in mainland China, and the latest move could affect thousands of workers, many of whom have just joined the company during a hiring spree that began in December last year.
However, the company on Tuesday has said that it is implementing organisational restructuring and personnel optimisation that will affect less than 10 per cent of its total workforce. Those affected have been “compensated in compliance with local regulations,” the spokesperson was quoted saying by IANS.
Xiaomi in November reported a 9.7% fall in third-quarter revenue, hit by China’s COVID-19 restrictions and softening consumer demand. Revenue from smartphones, which make up roughly 60% of its total sales, fell 11% year-on-year, Xiaomi said.
Xiaomi is preparing for its first big launch of 2023 in India, with the new Redmi Note 12 lineup launching on January 5 in the country. The company has been sharing teasers of the phone’s features, and many expect the new devices to be focused on mid-range buyers.
(With Reuters and IANS inputs)