Tuesday, February 7, 2023
HomeDigit NewsRecession hits Chinese smartphone maker Xiaomi, company is cutting jobs

Recession hits Chinese smartphone maker Xiaomi, company is cutting jobs

Xiaomi, which is included in the big smartphone companies, has started laying off workers from many of its units. The company plans to reduce its workforce by about 15 percent. Xiaomi’s staff count stood at 35,314 at the end of September. Of these, more than 32,000 are in China.

A Hong Kong newspaper reports layoffs at Xiaomi, citing workers who have been laid off and local media in China Report given. It said that many posts have been made on social media platforms such as China’s Weibo and Xiaohongshu regarding job cuts. Thousands of workers can be affected by this decision of the company. Many of them had started jobs with the company in December last year. Xiaomi did not respond to an emailed query from Reuters. Lockdown has been imposed in many cities to prevent the spread of corona in China. This has reduced the demand for electronics.

Xiaomi’s revenue decreased by about 10 percent in the last quarter. company Sales of the smartphone have been affected by the slowdown in the global smartphone market and declining demand in China. There was a decrease of about 11 percent in the sales of its mobile devices. During July-September, the company’s sales stood at 70.5 billion yuan (about Rs 80,900 crore). Xiaomi’s sales were slightly higher than expected, but the company’s net loss of about 1.5 billion yuan was surprising. Xiaomi had written down nearly 3 billion yuan in items such as loss on investments, resulting in a net loss in its results. Due to the zero covid policy in China, the difficulties of tech companies have increased. This has hindered the supply chain. However, Xiaomi has managed to increase market share in Europe.

Global sales of smartphones are expected to decline by 2.9 percent next year. Xiaomi’s unit sales are expected to fall this year. The company’s unit in India has been accused of providing false information to its banker Deutsche Bank over the years. The company had claimed that it had an agreement for payment of royalty, whereas there was nothing like that. Probe against the company has found that it had ‘illegally’ remitted money under the ‘head’ of royalty to US chip maker Qualcomm and others.

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