Recently, we have heard about the dismissal decisions of many companies. As a matter of fact, brands are taking this decision together with the worldwide economic crisis and the resulting unpleasantness. Xiaomi is one of the companies that are allegedly preparing to lay off employees. So why do companies follow such a path?
Xiaomi and dismissal allegations
As a result of increasing costs around the world, high inflation and stock fluctuations after the covid-19 epidemic, companies want to cover some of their losses by cutting back on their expenditures. According to rumors, Xiaomi is also among the companies that have been harmed. It is thought that more than one department of the company is adversely affected by the economic conditions.
The discourse of a number of sources within Xiaomi is that the size of the layoffs will change in the department. For example, while some departments see a reduction of 40 percent, in some departments this number may increase to 70 percent.
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Xiaomi’s performance this year is much lower than in previous years. Compared to 2021, the profit rate of the company is close to 60 percent on average, with profits in the first three quarters of 28.6 billion yuan, 20.8 billion yuan and 21.2 billion yuan, respectively.
How many people can be removed?
According to the data announced in the past months, Xiaomi, which has 35,314 employees, 32,609 of which is in China, may be trying to reduce costs by reducing its workforce. However, it is not yet clear how such a move will affect the competitiveness of the company. Although nothing is said about how many people the company will lay off, it is claimed that this rate will be around 15 percent. This means that approximately 6,000 people are faced with this danger.
It is worth remembering that everything related to the subject is just a claim for now. Unless an explanation is made by the company officials, it will remain as a claim.
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