Xiaomi job cuts: China's biggest smartphone maker lays off under 10% of workforce

Chinese technology company Xiaomi has begun laying off workers across several of its smartphone and internet services units, according to Hong Kong newspaper South China Morning Post. The job cuts are reportedly affecting around 15 per cent of the company's workforce, which stood at 35,314 as of 30 September. Around 32,000 of the total workforce is based in mainland China. 

Responding to the report, a Xiaomi spokesperson told Business Today that the actual figure is much lower at under 10 per cent. The spokesperson said, "Xiaomi recently implemented routine personnel optimization and organizational streamlining, with affected parties totalling less than 10 per cent of total workforce. Those affected have been compensated in compliance with local regulations."

Many affected by the layoffs had only recently joined the company. Xiaomi conducted a hiring spree in December 2021. The job cuts come after Xiaomi reported a 9.7% fall in third-quarter revenue in November, due to COVID-19 restrictions in China and declining consumer demand. Smartphone revenue, which makes up around 60% of the company's total sales, fell by 11% year-on-year.

Xiaomi workers impacted by the layoffs have posted their ordeal on various Chinese social media platforms, including Weibo, Xiaohongshu and Maimai. The report claims that the platforms are 'flooded with posts' about Xiaomi job cuts. Xiaomi is one of the biggest smartphone makers in the world and is the biggest in China. The layoffs show the new wave of job cuts has also started impacting Chinese companies. 

Latest Flagship Series Xiaomi 13

Xiaomi recently introduced its latest flagship Xiaomi 13 series. The new smartphone uses the top-tier Qualcomm Snapdragon chipset, Snapdragon 8 Gen 2. The phone focuses on key areas like camera, battery, and design. The company is facing fresh competition from Chinese rivals like Vivo, Oppo and OnePlus.

In India, Xiaomi is losing market share to manufacturers like Samsung, Vivo, Realme and Oppo. While it still maintains the top spot, according to Counterpoint Research, the rivals have inched extremely close to Xiaomi. Both Xiaomi and Samsung have a market share of 19 per cent in the Indian market. They are followed by Vivo at 17 per cent, Realme at 16 per cent and Oppo at 11 per cent.