Nothing is going well in China right now. China, which is considered to be the factory of the world, is gasping for breath due to Corona. Apple’s factory also had to face closure due to Corona. Meanwhile, shocking news has come from China’s largest smartphone company Xiaomi. Chinese smartphone maker Xiaomi has reportedly laid off over 900 employees, according to local media reports.
Thus, after Facebook-parent Meta, Elon Musk’s Twitter and Microsoft in the world of IT, now Xiaomi’s name has also been added to the layoffs. Xiaomi’s decision comes amid declining mobile phone sales across the world including India and declining production in China.
According to a report in the South China Morning Post, Xiaomi has laid off around 3 percent of its workforce amid the economic downturn. However, the company has not yet confirmed this. In November, Xiaomi reported a 9.7% decline in its third quarter revenue in the wake of stricter restrictions due to China’s zero-COVID policy and low consumer demand.
20 percent fall in mobile sales
Sales fell 20% year over year to $10.31 billion. Meanwhile, smartphone revenue, which accounts for about 60% of the company’s total sales, fell 11% year-over-year. As of September, the total number of employees of the company was approximately 35,314, of which approximately 32,000 employees were in the Chinese mainland.
Decreased effect of sale in India
One end of the massive retrenchment in China seems to be connecting with India as well. As of the second quarter of this year, Xiaomi is the leader in the smartphone market in India, according to Counterpoint Research. After this comes the number of Samsung. However, rivals Vivo (17 per cent) and Realme (16 per cent) are catching up. Xiaomi is currently facing a government probe in India for allegedly dodging tax regulators.
More jobs lost than the 2008 recession
According to a report in IANS, layoffs by tech companies this year have crossed the level of the global recession of 2008-2009. Elon Musk fired about 3,700 of Twitter’s 7,500 employees. Meanwhile, Facebook parent Meta laid off nearly 11,000 employees amid declining revenue from ad sales. Tech giant Microsoft has laid off nearly 1,000 employees from Teams globally.
Recession looms large over Indian startups
Earlier, several tech firms had announced that they were putting recruitment on hold. Meanwhile, a slew of Indian startups have slashed jobs across verticals to cut costs amid the funding freeze. Startups including Byju’s, Cars24, Ola, OYO, Meesho, Udaan, Unacademy and Vedantu have laid off around 18,000 employees so far, reports Inc42.
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