Xiaomi India is reportedly laying off more people in an operational rejig. According to an Economic Times report, the company has laid off more than 30 employees in the last week. As per the report, Xiaomi India, which had around 1,400 to 1,500 employees at the beginning of 2023, is planning to reduce its headcount to under 1,000. The company is expected to let go of more employees in the coming weeks. Read on to learn all about the latest development at Xiaomi India.
Xiaomi India Reportedly Fires 30 Employees to Reduce Headcount
According to the report by Economic Times, Xiaomi India had around 1,500 employees at the start of the year. However, the company seems to be trying to reduce the headcount to under 1,000. To this extent, the company has reportedly fired around 30 employees in the last week. And if the report is to be believed, more layoffs will come in the coming weeks.
The report also cites a Xiaomi spokesperson saying that these new job cuts are because of Xiaomi India’s declining market share. The company believes it is losing market in India due to “internal organisational issues.” Another reason is that the Indian organisational restructuring plans and authority are centralised at the Chinese headquarters. The company is now changing its business outlook and has reportedly “empowered the local Indian leadership.”
While the company has plans to hand pink slips to more employees over the coming weeks, the report suggests that immediate layoffs are not on the cards. This is because the leadership is reportedly under pressure to identify underperforming employees within the organisation. The company is said to lay off or retain employees based on their individual performance assessments.
Notably, Manu Kumar Jain, Global VP and face of Xiaomi India, called it quits after nine years with the company earlier this year. Jain’s exit came when the company was under scrutiny for tax evasion and losing the top spot in the smartphone market to Samsung, according to a Canalys research report. Moreover, the Enforcement Directorate (ED) issued a show cause notice to Xiaomi India to probe illegal remittance of 5,551.27 crores earlier this month.
It seems that these were the events that got the ball rolling for Xiaomi India to consider an organisational restructuring. Xiaomi India is actively reviewing various strategies to optimise resource allocation and streamline the organisational structure.