Xiaomi will lay off up to 15% of employees in hopes of cutting costs amid falling demand for smartphones
The drop in demand for smartphones has led to the fact that Xiaomi may lay off several thousand employees to reduce costs. Moreover, it is possible that even the staff that has been recently hired will lose their jobs.
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According to the South China Morning Post, Xiaomi could lay off up to 15% of employees. The staff reductions will also affect the units that develop and produce smartphones. The Beijing-based company had 35,314 employees at the end of last quarter. The dismissal of 15% means that more than 5,000 people will be out of work.
The main reason for the cuts is not the best situation in the smartphone market. In the third quarter of 2022 compared to the third quarter of 2021, handset shipments fell 9% to 297.8 million units. The Chinese market fell by 11%, to 70 million units.
Xiaomi in its home country in the last quarter ranked only fifth with a share of 13%. The Chinese manufacturer's year-on-year revenue fell 9.7% to about $10 billion and net income more than halved (59.1), dropping to $0.32 billion.