After 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 big names in the industry are looking to cut corners. Many companies have expressed their desire to reduce costs and this includes layoffs. The latest company to join this trend is Xiaomi which would have laid off 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 the consequence of poor quarterly results from the Chinese firm. Xiaomi fell short of its target over the past three months, with turnover down nearly 20% in the second quarter of 2022. A sharp drop for the famous smartphone manufacturer which is facing Chinese restrictions linked to Covid-19, inflation, the war in Ukraine. After a surge in sales in 2021, following the struggles of rival Huawei, Xiaomi’s share price has fallen nearly 40% since the start of 2022.
After a phase of euphoria, Xiaomi is caught up in the crisis
By laying off more than 900 people, the Chinese group would separate from nearly 3% of its workforce. As of June 30, Xiaomi had 32,869 full-time employees with 30,110 based 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.
Note that Xiaomi is not the only company to have fired 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 decline.
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.