Xiaomi may cut 15% of workforce amid lockdowns in China

As per a report, Xiaomi will cut jobs in several units of its smartphone and internet services business.
Representative Image
Representative Image

HONG KONG: Chinese smartphone maker Xiaomi may lay off workers from multiple departments, as it aims to reduce 15 per cent of its workforce amid the rough global macroeconomic conditions and local COVID-19 lockdowns, a report said.

It cited several social media posts by affected Xiaomi employees and local Chinese media reports.

Xiaomi had 35,314 employees as of September 30, with more than 32,000 in mainland China. The extent of the lay-offs is unknown and “Xiaomi declined to comment”, as per the report.

As per a report, Xiaomi will cut jobs in several units of its smartphone and internet services business.

It was also reported that some departments have seen layoffs of up to 75 per cent, while others have had around 40 per cent of their teams cut.

China’s social media platforms, including Weibo, Xiaohongshu and Maimai, have been flooded with posts about the reported Xiaomi job cuts. The news of the layoffs comes as Xiaomi’s financial performance has been under pressure in 2022.

The Beijing-based tech giant started laying off workers this year amid weaker sales due to COVID-19 lockdowns in China and slower consumer spending. It is estimated the number of layoffs in this round may reach 6,000.

Xiaomi says less than 10% workforce to be affected amid ‘organisational streamlining’

Xiaomi said the company is implementing organisational restructuring and personnel optimisation that will affect less than 10 per cent of its total workforce. Earlier reports claimed Xiaomi may cut 15 per cent of its workforce amid COVID-19 lockdowns in China and rough global macroeconomic conditions.

“Xiaomi recently implemented routine personnel optimisation and organisational streamlining, with affected parties totalling less than 10 per cent of total workforce,” a company spokesperson said.

Those affected have been “compensated in compliance with local regulations,” the spokesperson added.

Earlier it was reported that Xiaomi may lay off workers from multiple departments, as it aims to reduce 15 per cent of its workforce amid the rough global macroeconomic conditions and local COVID-19 lockdowns. Xiaomi had 35,314 employees as of September 30, with more than 32,000 in mainland China.

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