wants to cut staff by up to 10 percent

wants to cut staff by up to 10 percent

There are layoffs at Xiaomi as a result of so-called “business optimisations”, a Chinese newspaper writes. The company can cut up to 10 percent of its workforce and about 35,300 people work for the tech giant.

Xiaomi layoff round

Xiaomi is the next tech company to cut its staff, after previously Meta, Twitter and Amazon cut jobs. According to the South China Morning Post, Xiaomi explains in its home country that these are “business optimisations” and that they could affect up to 10 percent of its total workforce worldwide. The vast majority of the vanes are located in China. There are 32,000 people working there out of a total of just over 35,300 employees. At the moment there are about 900 jobs that have been lost.

The layoffs are probably related to the tensions in the global economy. This is also clearly reflected in smartphone sales, which have reached their lowest level since 2014. For Xiaomi, smartphone sales account for 60 percent of its total product sales.

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More layoffs?

In addition to Meta, Twitter and Amazon, Chinese giants Tencent and Alibaba Group have also let employees go in recent months. China is also experiencing more problems than European countries with the corona virus that is rearing its head again. News of the job cuts comes not long after Xiaomi unveiled its new flagship Xiaomi 13 series phones.

It is not clear whether more layoffs will follow at other tech companies. Due to high energy prices – which are a problem mainly in Europe – it is likely that consumers are inclined to postpone major purchases. Buying a new smartphone is considered by many people to be such a rotten purchase. If this situation continues in the longer term, it could lead to more layoffs.

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