China’s Xiaomi has started reducing the number of employees in its smartphone and internet services business, slashing its workforce by about 15 percent, the South China Morning Post news report said.
The Hong Kong newspaper cited social media posts by affected employees and local Chinese media, saying China’s social media platforms, including Weibo, Xiaohongshu and Maimai, have been flooded with posts about the job cuts.
Xiaomi had 35,314 employees as of Sept. 30, with over 32,000 in mainland China, and the latest move could affect thousands of workers, many of whom have just joined the company during a hiring spree that began in December last year.
Xiaomi website said it had 35,314 full-time employees, 32,609 of whom were based in mainland China, primarily at its headquarters in Beijing, with the rest primarily based in India and Indonesia.
Xiaomi, as part of its human resources strategy, offers competitive compensation packages. As of September 30, 2022, 14,775 employees held share-based awards. The remuneration expenses, including share-based compensation expense, in the third quarter of 2022 were RMB4.3 billion, Xiaomi said.
Xiaomi in November reported a 9.7 percent drop in third-quarter revenue, hit by China’s COVID-19 restrictions and softening consumer demand. Xiaomi said revenue from smartphones, which make up roughly 60 percent of its total sales, fell 11 percent year-on-year.