China’s giant mobile maker Xiaomi has started its laying off series, writing its name in the list of companies laying off this year.
Several workers from different units of the smartphone company and internet business witnessed around a 15% reduction in their total workforce. The story was unknown until the South China Morning Post reported on Tuesday.
Recently, the Hong Kong newspaper wrote that social media have been flooded by posts mentioning the massive job cuts in various Chinese industries and media houses.
Some of the well-known industries are Weibo, Xiaohongshu, and Maimai, which have noticed a sharp increase in the number of job cuts.
According to the paper, as of September 30, the company had around 35,314 workers with over 32,000 in mainland China.
The latest move of job cuts would affect thousands of workers. Some of them joined the company recently in the hiring session that happened in December 2021.
Reason for the layoffs :
Earlier in November, the company reported a fall of 9.7% in third-quarter revenue. The reason behind the downfall is the imposition of COVID-19 restrictions and a decrease in the demand among customers.
Xiaomi stated that the revenue that used to be collected from smartphones was roughly 60% of its total sales, which fell 11% every year.
As the country is continuing the COVID-19 restrictions around the whole state to stop the spread of the Omicron variant, several companies have been affected and Xiaomi is one of them.
The net income of the company was 59.1% to 2.12 billion over the period from 5.176 billion yuan one year ago. Xiaomi’s stock worth has plunged almost 50% since the advent of the year.
Xiaomi Corporation commonly referred to as Xiaomi and officially known as Xiaomi Inc., is a Chinese company that designs and manufactures consumer electronics, home appliances, and other household goods.
It was founded by Lei Jun, Lei Bin, Zhou Guangping, Wanqiang Li, Wong Jiangji, Lui De, HONG Feng, and Wang Chuan on 6 April 2010 in Beijing. The present CEO of Xiaomi is Lei Jun. The headquarters of the company is based in Haidan District, Beijing, China. It had a total workforce of 33,427 as of 31 December 2021.