Highlight
- Chinese smartphones cut more than 900 jobs
- Layoffs affected about 3 percent of Xiaomi’s employees
- Many big tech companies, unicorns and startups have laid off employees amid the global recession.
Chinese smartphone giant Xiaomi has cut over 900 jobs amid the ongoing economic slowdown as its revenue declined by nearly 20 per cent in the June quarter (Q2), media reported on Saturday.
According to the South China Morning Post, the layoffs affected about 3 percent of Xiaomi’s workforce.
As of June 30, 2022, the company had 32,869 full-time employees, of whom 30,110 were located in mainland China, primarily at its headquarters in Beijing, with the rest primarily located in India and Indonesia.
The company had 14,700 employees in its research and development area during that same time frame.
Xiaomi’s President Wang Jiang said during a call with analysts after reporting its quarterly earnings on Friday, “This quarter, our industry has been affected by rising global inflation, foreign exchange volatility (and) including a complex political environment.” Faced many challenges.”
“These challenges significantly affected overall market demand and our financial results for the period,” Jiang said.
Revenue from the smartphone segment fell 28.5 percent, from 59.1 billion yuan in the second quarter of last year to 42.3 billion yuan this year, “primarily due to a decrease in our smartphone sales”.
“In the second quarter of 2022, global macroeconomic unrest and the resurgence of COVID-19 continued to impact the overall market demand for smartphones,” Xiaomi said.
According to Canalys, global smartphone industry shipments declined 8.9 percent year-on-year and 7.7 percent quarter-on-quarter, and mainland China industry shipments declined 10.1 percent year-on-year and 10.9 percent Is. ,
Earlier, Chinese conglomerate Tencent laid off 5,500 employees after posting revenue of $19.8 billion in the June quarter, the first drop since going public.
Many big tech companies, unicorns and startups have laid off employees amid the global macro-economic conditions.
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