This latest move by Xiaomi, could reduce its payroll by about 15%.
Chinese smartphone manufacturer Xiaomi Corporation will lay off around 10% of its workforce, amid the spate of rising Covid-19 infections in the country. Xiaomi joins A-listers such as Alibaba Group and Tencent Holdings in the list of big technology companies in China that have been laying off workers amid a prolonged Covid-19 outbreak.
The company said on Tuesday that its “personnel optimisation and organizational streamlining” practice would “affect less than 10% of total workforce”, adding that those affected have been compensated in compliance with local regulations, as per local media reports.
Local media portal South China Morning Post reported that Xiaomi had a workforce of 35,314 until September 30, with over 32,000 working in mainland China. The smartphone manufacturer’s latest decision could affect thousands of workers, many of whom joined the company during a hiring frenzy that began in December last year.
The company reported a sharp decline of 9.7% in its third-quarter revenue, due to China’s zero Covid-19 policy. Revenue from smartphones, which make up almost 60% of the company’s total sales, fell 11% year-on-year.
The report said laid-off workers were given redundancy packages, adding that the move may reduce Xiaomi’s payroll by about 15 per cent.
Xiaomi Corporation is a China-based investment holding company that is a prime manufacturer of consumer electronics, and related software, home appliances, and household items. Incorporated in 2010, the company is one of the leading manufacturers of smartphones. The company’s other business segments are — IoT and lifestyle product segment which includes sales of in-house products such as smart televisions (TVs), laptops, artificial intelligence (AI) speakers and smart routers; ecosystem products such as IoT and other smart hardware products. The company has a separate segment for repair services for its hardware products.