Here’s how Covid pushes layoffs in Xiaomi
Chinese smartphone maker Xiaomi to cut 10% of jobs due to new Covid waves in China. Facts, numbers and insights
The layoffs for Xiaomi, the largest Chinese smartphone maker, are underway.
A company spokesman said on Tuesday that its practice of "staff optimization and organizational streamlining" "will affect less than 10 percent of the total workforce," adding that those affected were being paid in accordance with local regulations.
The layoffs show that the new wave of job cuts from US big techs has started to affect Chinese firms as well.
Many big tech companies in China, including Tencent Holdings and Alibaba Group, have laid off workers in recent months as China has remained mired in a long battle against a resurgence of Covid-19 outbreaks, Reuters reports.
The job cuts come after Xiaomi reported a 9.7% decline in third-quarter revenue in November amid Covid-19 restrictions in China and falling consumer demand. Revenue from smartphones, which account for about 60% of the company's total sales, declined 11% year over year.
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THE WORKFORCE OF XIAOMI
The Chinese multinational is starting a round of layoffs in several of its smartphone and internet services units. A turnaround therefore for Xiaomi who had led a recruitment race in December 2021.
According to the South China Morning Post , Xiaomi had 35,314 employees as of Sept. 30, with more than 32,000 in mainland China, and the latest move could affect thousands of workers, many of whom have just joined the company during a hiring rush that began in December 2019. last year.
“Xiaomi has recently implemented routine staff optimization and organizational simplification, with stakeholders representing less than 10% of the total workforce. Interested individuals are rewarded in accordance with local regulations,” a company spokesperson said.
CHINESE RESTRICTIONS FOR COVID HAVE KILLED TURNOVER
Xiaomi reported a 9.7% decline in third-quarter revenue in November, impacted by China's COVID-19 restrictions and weakening consumer demand. Smartphone revenues, which account for about 60% of total sales according to Xioami, declined 11% year-on-year.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/ecco-come-il-covid-spinge-i-licenziamenti-in-xiaomi/ on Wed, 21 Dec 2022 06:59:19 +0000.