the bad news is linked for the Chinese giant
After announcing disappointing quarterly results, Xiaomi has decided to lay off more than 900 employees. The Chinese giant is one of the producers most affected by the current economic crisis.
The world of technology is going through tough times and the big names in the industry are trying to cut corners. Many companies have expressed a desire to reduce costs, including layoffs. The latest company that joined this trend is: Xiaomi, which would have fired more than 900 employees. Quoted by the South China Morning Post, the information has not yet been confirmed by the Chinese giant.
These layoffs would be the result of: bad quarterly results of Chinese society. Xiaomi has failed to achieve her goal in the past three months, with turnover decreased by almost 20% in the second quarter of 2022. A sharp decline for the famous smartphone manufacturer due to Chinese restrictions linked to Covid-19, inflation, the war in Ukraine. After the surge in sales in 2021, following the struggles of rival Huawei, Xiaomi’s share price has fallen by almost 40% since the beginning of 2022.
After a phase of euphoria, Xiaomi is in crisis
By firing more than 900 people, the Chinese group would have split up nearly 3% of the workforce. As of June 30, Xiaomi had 32,869 full-time employees with 30,110 in China. The rest of the employees are located 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 isn’t the only company firing employees. Apple recently fired 100 recruiters, as well as big names like Netflix, Twitter or Microsoft. On the other hand, Google has announced a delay in hiring for the rest of the year. A complicated situation that also affects smartphone manufacturers as sales continue to decline.
Recall that 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 eyewear or robotics.