China-based smartphone maker Xiaomi may have started a giant layoff movement. The technology giant, which has 35,314 employees worldwide, may lose 15 percent of these employees.
The crisis and economic recessions in the global economy continue to affect giant technology companies. We have recently seen many companies start layoffs to reduce rising costs. Now, Xiaomi, one of the ambitious names of the smartphone market, may face a similar situation.
Layoffs Start At Xiaomi
Reportedly, Xiaomi has begun layoffs in all of its smartphone, internet and China divisions. While this move is expected to affect 6,000 employees in the first phase, it is estimated that some departments have experienced a 40 to 75 percent decrease in the number of workers. Among the details shared, the company reportedly had a total of 35,314 employees, of which 32,609 were in China, as of September 30, with layoffs representing 15 percent globally.
The dismissal decision may be linked to Xiaomi’s financial performance this year. Because the tech giant reported earnings of 28.6 billion yuan, 20.8 billion and 21.2 billion yuan in the first three quarters. We can say that these figures are well below the 60 million yuan success achieved in the single quarter of 2021.
It is unknown how the layoffs will affect the company’s operations and performance going forward. It is also worth noting that no official statement has been made by the company yet.