China’s Xiaomi Begins Lay Off Thousands amid Economic Crisis

Chinese smartphone maker Xiaomi has begun laying off workers in many units of its smartphone and internet services business, decreasing its headcount by roughly 15%, according to Reuters on Tuesday, which cited the South China Morning Post.

According to a Hong Kong newspaper, Xiaomi had 35,314 employees as of September 30, with more than 32,000 in mainland China; the newest move may affect thousands of employees, many of whom have only recently joined the company following a hiring drive that began in December of last year..

In November, Xiaomi revealed that its revenue for the third quarter had dropped by 9.7% due to the impact of government’s Covid-19 restriction and weaker consumer demand. Xiaomi reported that revenue from smartphones, which account for around 60% of overall sales, decreased 11% year on year.