Hong Kong, Aug 20 : Chinese smartphone giant Xiaomi has cut over 900 positions in the current economic downturn with revenues falling around 20 percent in the quarter ending June (Q2) The news media reported on the weekend.According to South China Morning Post, the layoffs impacted nearly 3 percent of Xiaomi’s workers.
As of June 30th 2022, the business had 32,869 full-time workers 30,110 of who were based in mainland China, mostly in its headquarter in Beijing, with the remaining primarily in India as well as Indonesia.
The company employed 14,700 employees in the research and development department in the same time frame.
“In the last quarter, our business has faced numerous challenges, including the rise in global inflation, currency fluctuations (and) complex political environments,” said Xiaomi president Wang Xiang during a call with analysts after releasing its earnings for the quarter on Friday.
“These problems significantly affected the market demand and our financial performance for the quarter,” said Xiang.
Smartphone sales declined 28.5 percent, dropping from 59.1 billion dollars in the second quarter of last year, to 42.3 billion yuan in the current year.This is “primarily because of lower numbers of our phones”.
“In the second quarter of 2022 global macroeconomic turmoil and the revival of Covid-19 continue to affect the overall demands for smartphones.” stated Xiaomi.
Global smartphone industry shipments declined 8.9 per cent year-over-year and 7.7 per cent quarter-over-quarter, and mainland China industry shipments declined 10.1 per cent year-over-year and 10.9 per cent quarter-over-quarter, according to Canalys.
The company had earlier announced that Chinese conglomerate Tencent laid off 5,500 employees after generating a revenue of $19.8 billion in the June quarter, a decrease of 3 percent.This is the first decrease since the company went public.
Many Big Tech companies, unicorns and startups have cut employees in the wake of the global macroeconomic conditions.
na/
