New layoffs: This company is making changes in its business structure. Under this, the company is laying off its employees and plans to bring down the number of employees below 1,000. At the beginning of this year 2023, it had 1400-1500 employees. Know why the company is doing this layoff and what the company has to say on this
Layoff News: Xiaomi India is making changes in its business structure. Under this, the company is laying off its employees and plans to bring down the number of employees below 1,000. At the beginning of this year 2023, it had 1400-1500 employees. It has been revealed in a media report that earlier last week the company had laid off 30 employees and now gradually the total employees will be brought down to below 1000 i.e. more than 30 percent of the employees may suffer a setback. Xiaomi India sells smartphones, TVs, laptops and tablets.
What is the reason for the layoff
According to media reports, the layoffs are being done due to declining market share by current and former employees and intense scrutiny by government agencies. Employees say that due to restructuring, most of the decision-making power has gone to Xiaomi, the Chinese parent company of Xiaomi India and since the beginning of this year it has been reducing employees. Although the spokesperson of Xiaomi India says that the Indian unit has full authority and how many employees will be there, it is decided according to the business. The spokesperson further said that hiring will continue as and when the need arises.
How is the health of Xiaomi India?
According to Counterpoint Research, which tracks the market, earlier the company dominated the smartphone segment under Rs 10,000. However, now its shipment in this segment has fallen by 44 percent, which is a record decline for it so far. In the first quarter of this year, January-March 2023, its shipment has come down to 5 million, while it was 70-80 million in the same period last year. Earlier, it was the top smartphone brand for 20 consecutive quarters but now with 16 per cent market share, it has slipped to the third spot behind Samsung and Vivo.
Apart from this, the company is also facing business challenges. The Central Investigation Agency ED seized its bank assets worth Rs 5500 crore in the case of wrongly sending money abroad. Xiaomi’s lawyers say it is facing a cash crunch and have sought an interim order so that it can access its bank accounts for day-to-day expenses.
