Chinese smartphone giant Xiaomi reportedly to lay off 15% of staff - PingWest

Chinese smartphone giant Xiaomi reportedly to lay off 15% of staff

Chinese smartphone giant Xiaomi reportedly to lay off 15% of staff

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Chinese top smartphone maker Xiaomi will lay off 15% of its staff, involving various departments such as smartphones and Internet service businesses, Chinese news outlet Jiemian reported on Monday.

If confirmed, the move could affect thousands of workers. Xiaomi had 35,314 employees as of Sept. 30, more than 32,000 of them in mainland China, according to its third-quarter financial results.

The layoff come days after Xiaomi founder Lei Jun unveiled the company's new flagship 13-series smartphones powered by Qualcomm Snapdragon chipsets.

A softening economy is weighing on the consumer electronics market. According to IDC, China's smartphone shipments in the third quarter came in at 71.1 million units, a year-on-year decrease of 11.9%. 

Xiaomi’s third-quarter financial report shows revenue from smartphones, which makes up roughly 60% of Xiaomi's total sales, plunged 11.1% year-on-year. 

In India, where Xiaomi dominates the smartphone market, shipments have also not fared well. Last quarter, its shipments in the country fell 11% from a year earlier, according to Counterpoint Research.

Chinese mobile phone brands including Xiaomi, VIVO, and OPPO have been closely scrutinized by the Indian government. The Indian Enforcement Directorate earlier this year seized bank accounts of Xiaomi India after finding that the company had remitted $725 million to three foreign-based entities “in the guise of royalty” payments. The company's executives refuted the allegations and raised a legal challenge to the ruling, Reuters reported earlier.

Hong Kong-listed Xiaomi’s shares closed down 2.73% on Monday.

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