JAKARTA - Xiaomi, a smartphone manufacturer that has ambitions to beat the iPhone as number one globally, is said to have laid off less than 10 percent of its workers.
"Recently (we) implemented the optimization of routine personnel and organizational downsizing, with the affected party amounting to less than 10 percent of the total workforce," Xioami said in an official statement yesterday.
According to Xiaomi's financial report in the third quarter of this year, Xiaomi's total employees reached 35,314 workers on September 30, with most of these workers 32,609 based in mainland China, followed by India and Indonesia.
First reported by the South China Morning Post, Wednesday, December 21, citing one of the uploads of Xiaomi employees affected on social media. Xiaomi will cut jobs in several smartphone business units and its internet services.
The laid-off workers will be given a redundancy package, hinting the move could reduce the salary of Xiaomi workers who still live by about 15 percent.
Xiaomi's layoffs come as China is grappling with the economic impact of years of COVID-19 restrictions as well as demand for slowing global smartphones.
Launching CNET, last November, Xiaomi reported a nearly 10 percent drop in third-quarter revenue with smartphone sales dropping 11 percent year-on-year (YoY). The revenue from smartphones stands at around 60 percent of the company's total sales.
These latest layoffs could affect thousands of workers, many of whom recently joined the company during the signings that began in December last year.
Xiaomi's move to lay off its employees follows a spate of layoffs in a number of major tech companies, such as Meta, Twitter, and Amazon.
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