Skip to main content
Best News Website or Mobile Service
WAN-IFRA Digital Media Awards Worldwide 2022
Best News Website or Mobile Service
Digital Media Awards Worldwide 2022
Hamburger Menu

Advertisement

Advertisement

Business

Smartphone maker Xiaomi to slash 10% of jobs amid China's COVID battle

Smartphone maker Xiaomi to slash 10% of jobs amid China's COVID battle

FILE PHOTO: Staff members stand near the company logo at a Xiaomi store in Shanghai, China November 1, 2021. Picture taken November 1, 2021. REUTERS/Aly Song

:China's Xiaomi Corp has started laying off workers in its smartphone and internet services business, joining a long list of Chinese tech firms cutting jobs as the country battles COVID-19 outbreaks.

A company spokesperson said on Tuesday that its "personnel optimzation and organizational streamlining" practice would "affect less than 10 per cent of total workforce", adding that those affected have been compensated in compliance with local regulations.

China's social media platforms, including Weibo, Xiaohongshu and Maimai, have been flooded with posts about the job cuts this week. Chinese local media first reported on Monday that the job cut would affect 15 per cent of Xiaomi's payroll, citing unnamed sources.

Many big tech companies in China including Tencent Holdings and Alibaba Group have been laying off workers in recent months as China became mired in a prolonged battle with COVID-19 outbreaks.

Xiaomi had 35,314 staff as of Sept. 30, according to the South China Morning Post, with over 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 spree that began in December last year.

Xiaomi in November reported a 9.7 per cent fall in third-quarter revenue, hit by China's COVID-19 restrictions and softening consumer demand. Revenue from smartphones, which make up roughly 60 per cent of its total sales, fell 11 per cent year-on-year, Xiaomi said.

Source: Reuters/sn

Advertisement

Also worth reading

Advertisement