The Chinese designer and manufacturer of consumer electronics, Xiaomi is set to lay off employees bringing the headcount to less than 1000 in India.
How Did This Happen?
The move comes amid the organization rejig, a slump in stock market share, and intense scrutiny by government agencies on the Chinese smartphone brand.
Prior to this development, Xiaomi India which employed 1,400-1,500 people at the start of 2023, laid off around 30 people in the past week or so.
More are likely to be given a pink slip in the coming months, as per the media report.
It appears that the smartphone manufacturer has been reducing the headcount steadily since the start of the year.
Reportedly, the business restructuring has vested most of the decision-making in the hands of the Chinese parent.
The headcount decisions were a function of business outlook and that the local Indian leadership has been ‘empowered’, said the Xiaomi spokesperson.
Further added, “As with any company, we take headcount decisions based on the market’s state and business projections, the firm continues to hire when and where needed.”
Company Restructuring Affecting Headcounts
The leadership team at the start of the year was nudged to designate a part of their respective teams for a performance improvement plan (PIP), said Another senior executive working at the company.
It seems that these employees could then be easily let go on performance grounds.
The layoffs come amidst the company reorganizing its internal structures as most of the decisions are now being made by the Chinese parent.
This is a change that several employees said was at the heart of the company’s slipping market share.
In the meantime, Xiaomi India’s shipments fell to 5 million during the first quarter of 2023, from 7-8 million a year ago.
With this, the company slipped to the third position behind Samsung and Vivo with a market share of 16% after being the top smartphone brand in India for 20 straight quarters.
