Chinese smartphone manufacturer Xiaomi has let go of around 10% of its workforce as the company cuts costs in the face of covid-19 outbreaks in China.
South Morning China Post reported, a spokesperson described the mass layoff as “personnel optimisation and organisational streamlining”, and staff affected will be compensated in adherence with local regulations.
According to the newspaper, Xiaomi had over 32,000 staff in mainland China and the company only went on a hiring spree 12 months ago.
Local media first reported the cuts would be 15% according to unnamed sources. Speculation on Xiaomi’s cull was rife on social media platforms Weibo, Xiaohongshu and Maimai.
Xiaomi was not alone in making layoffs as Tencent and Alibaba have also made cuts in the last few months as China struggled with covid-19 outbreaks
Xiaomi reported revenues dropping 9.7% in its Q3 results due to weaker demand for electronics and government retractions to curb the pandemic. The company makes the majority of revenue, around 60%, from smartphone sales and total sales in this segment dropped 11% year-on-year.