A Chinese designer and manufacturer of consumer electronics and related software, home appliances, and household items company Xiaomi Corp has started laying off workers in several units of its smartphone and internet services business.
The layoffs will be affecting nearly 10% of the total workforce. The latest layoff could affect thousands of workers many of the employees have just joined the company during a hiring spree that began in December last year.
The company said, “China’s COVID-19 restrictions and softening consumer demand. Revenue from smartphones, which make up roughly 60% of its total sales, fell 11% year-on-year.”
A company spokesperson said on Tuesday that its “personnel optimization and organizational streamlining” practice would “affect less than 10% of the total workforce”. Those affected have been compensated in compliance with local regulations.”
Earlier, the local media reported that the company will be laying off 15% of the workforce.
Xiaomi had 35,314 staff as of Sept 30 with over 32,000 in mainland China.
Xiaomi was founded in 2010 by serial entrepreneur Lei Jun, who believes that high-quality technology doesn’t need to cost a fortune.
The company mark its presence with more than 61 million handsets sold in 2014, and products launched in Taiwan, Hong Kong, Singapore, Malaysia, Philippines, India, Indonesia, and Brazil, Xiaomi is expanding its footprint across the world to become a global brand.
