Xiaomi, a global smartphone company based in China, has slashed more than 900 jobs amid tough business conditions as its revenues dipped nearly 20 percent in the June quarter to 70.17 billion yuan.

Xiaomi reported 83 percent drop in profit to 1.36 billion yuan.

The job cut affected nearly 3 percent of Xiaomi’s workforce, according to the South China Morning Post.

Xiaomi had 32,869 full-time employees globally. Out of this, Xiaomi had 30,110 employees in China, primarily at its headquarters in Beijing, with the rest primarily based in India and Indonesia. Xiaomi had 14,700 employees in its research and development vertical alone.

As of June 30, 2022, 16,510 employees held share-based awards. The total remuneration expenses, including share-based compensation expenses, in the second quarter of 2022 were 4.1 billion yuan, Xiaomi said.

“In this quarter, our industry faced many challenges, including rising global inflation, foreign exchange fluctuations (and) complex political environment,” said Xiaomi president Wang Xiang during a call with analysts after reporting its quarterly earnings on Friday.

“These challenges significantly impacted overall market demand and our financial results for the period.”

Xiaomi’s second quarter revenue from the smartphone segment dropped 28.5 percent to 42.3 billion yuan this year from 59.1 billion yuan in the second quarter last year due to the decreased sales of smartphones.

Global smartphone shipments fell 8.9 percent year-over-year and 7.7 percent quarter-over-quarter, and mainland China industry shipments declined 10.1 percent year-over-year and 10.9 percent quarter-over-quarter, according to Canalys.