Xiaomi begins terminating employees due to Covid lockdowns in China

According to a report that Xiaomi begins terminating employees after declination of 9.7% YoY in its Q3 2022 revenue. It hit badly on employment.

Xiaomi begins terminating employees
Xiaomi begins terminating employees

Nagpur: According to the South China Morning Post, Chinese smartphone maker Xiaomi may fire employees from a variety of divisions as it works to cut 15% of its personnel in the face of challenging financial conditions around the world and local Covid-19 lockdowns. Reported on Business Standard

A corporate spokeswoman issued a statement explaining the layoffs as part of “regular personnel optimization and organisational streamlining,” adding that affected employees had received compensation in accordance with local laws. This information was released just a few weeks after an analyst firm claimed Xiaomi’s third-quarter 2022 revenue decreased. Additionally, it should be mentioned that the corporation reportedly fired 3% of its global workers in August.

At the end of September, Xiaomi had 35,314 employees, with more than 32,000 of them working on Chinese territory. According to a report by the Chinese media site Jiemian, Xiaomi will eliminate positions in a number of its internet services and smartphone business groups.

Xiaomi begins termination

It’s not yet clear how many employees impacted. Separately, the Chinese newspaper South China Morning Post came out with different estimate and stated there may have been close to 15% in layoffs. The magazine also discovered multiple posts concerning the layoffs on Chinese social media sites like Weibo, Xiaohongshu, and Maimai. These posts covered layoffs across divisions, including smartphone and AIoT. According to the article using Xiaomi’s financial report for the third quarter of 2022, the business had 35,314 employees worldwide, of which more than 32,000 worked in mainland China (as of September).

Xiaomi’s Q3 2022 revenue decreased by 9.7% YoY, which has an effect on the number of smartphones it ships to international markets. Revenue for its smartphone sector also decreased 11% year over year.

Despite a decline from 23% to 21% in Q3 2022 YoY, the company continues to enjoy enormous popularity in the nation and holds the greatest market share for smartphones in India. The announcement of the layoffs comes at a time when Xiaomi’s financial performance challenged in year 2022.

In response to poor sales caused by Covid-19 lockdowns in China and sluggish consumer spending, the Beijing-based IT company started firing employees this year.

Macroeconomic conditions have had an influence on numerous multinational and Indian tech firms over the past few weeks causing them to fire thousands of workers in an effort to reduce operating expenses. Meta, Amazon, Salesforce, Twitter, and Byju’s are among the companies have sacked many emolyees.BI Bank sued

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