It turned out that Xiaomi will join the technology giants that have laid off thousands of their employees. The Chinese company plans to lay off about 10% of its 35,000 staff due to the decline in revenues and smartphone sales.
Many technology giants around the world have been laying off their employees in recent months due to the events after the COVID-19 pandemic. Companies like Meta, Amazon, and Twitter had parted ways with tens of thousands of employees. Today, it was revealed that automobile giant Tesla will make a similar move in the first months of 2023.
Now, many news agencies, the Chinese technology giant Xiaomi’s announced that it plans to make such a move. Incoming information revealed that the company will fire close to 10% of the staff. Although details about the subject are not shared from the company that recently introduced the Xiaomi 13 series, this rate is Nearly 3500 people It shows that he will be fired.
Company lays off employees due to loss of revenue and falling smartphone sales
It is also among the news that Xiaomi will lay off people from many different departments, including smartphones and internet. According to CNN, the tech giant’s move will see revenues in the third quarter of this year compared to the same period in 2021 due to COVID restrictions in China and reduced demand for electronic devices. 10% drop comes later. It accounts for 60% of the company’s revenues. Smartphone sales also decreased by 11%. Let’s not go without adding. These factors cause a reduction in the workforce.
Xiaomi took a similar step during the year and 1500 people in the first nine months of 2022 reduced his workforce. Published documents show that as of September, the company is in total, mostly in China. 35000 He showed that he had an employee. With the new layoffs, we can predict that this number will fall between the levels of 31,500 – 32,000.
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The tech giant’s layoffs come at a time when China is grappling with growing economic problems. Three years of epidemic restrictions have hit businesses from many different sectors hard and increase in unemployment had caused. Statistics released by the government showed that the urban unemployment rate rose by 5.7% to the highest level in recent months. It was also observed that youth unemployment reached high levels.
We can say that the technology sector, which is one of the most prominent in the country, was also affected by the crisis. According to CNN’s estimates, e-commerce company Alibaba laid off 15,000 employees in the first nine months, while gaming giant Tencent laid off 4,000 in the same period. This move of Xiaomi also revealed that the layoffs continue and the unemployment problem in the country will increase.