Following the announcement of disappointing quarterly results, Xiaomi decided to lay off more than 900 employees. The Chinese giant is one of the manufacturers most affected by the current economic crisis.
The tech world is going through tough times and the big names in the industry are looking to cut corners. Many companies have expressed a desire to cut costs and this includes layoffs. The latest company to join this trend is Xiaomi that would have fired more than 900 employees. Mentioned by the South China Morning Post, the information has not yet been confirmed by the Chinese giant.
These dismissals would be a consequence of poor quarterly results of the Chinese firm. Xiaomi did not reach its goal in the last three months, with turnover was reduced by almost 20% in the second quarter of 2022. A sharp drop for the famous smartphone manufacturer facing Chinese restrictions related to Covid-19, inflation and the war in Ukraine. After an increase in sales in 2021, following the difficulties of its rival Huawei, the price of Xiaomi shares fallen by almost 40% since the beginning of 2022.
After a phase of euphoria, Xiaomi is involved in the crisis
By laying off more than 900 people, the Chinese group would break away from almost 3% of its workforce. As of June 30, Xiaomi had 32,869 full-time employees, of whom 30,110 were in China. The rest of the employees are in India and Indonesia. “During this quarter, our industry faced many challenges, including inflation, fluctuating exchange rates, (and) a complex political environment. […] These challenges had a significant impact on demand and our financial results for the period.”explains Wang Xiand, the president of Xiaomi.
I feel that Xiaomi is not the only company that has laid off employees. Recently, Apple fired a hundred recruiters and big names like Netflix, Twitter or Microsoft also fired. On the other hand, Google announced a slowdown in hiring for the rest of the year. A complicated situation that also affects smartphone manufacturers, as sales continue to fall.
As a reminder, Xiaomi introduced the Mix Fold 2 earlier this month to compete with Samsung’s Galaxy Z Fold 4. Finally, the manufacturer continues to diversify by focusing on connected glasses or robotics.