stockmarketwalk The Chinese manufacturer Xiaomi lays off 900 employees nearly 3 percent of the workforce as revenues continued to decline for two consecutive quarters according to local sources.
Before the announcement, Xiaomi had roughly 33,000 full-time employees, out of which 90% were based in mainland China, the others were employed in India and Indonesia.
The reason of layoffs was not communicated by the company, but it is assumed to be due to the decrease in revenue.
In its quarterly report, China’s largest smartphone maker reported an 83% decline in net profit compared to the same quarter last year due to low smartphone sales. Global macroeconomic difficulties and Covid-19 restrictions are mentioned among negative factors. The company’s net profit fell to 1.39 billion yuan ($204.80 million) in Q2 compared to 8.7 billion yuan in the same quarter of 2021.
In the Chinese market, there was the resurgence of the pandemic, so as a result, demand was difficult and weak
said Xiaomi’s CEO, Wang Xiang.
China’s economic growth unexpectedly slowed in July, as the world’s second largest economy is restrained by the extremely strict epidemic control.
Furthermore, the company also faces regulatory and tax issues in one of its biggest markets, India.
The Indian government is investigating alleged tax evasion by Chinese smartphone makers such as Vivo India, Oppo Mobiles and Xiaomi, for which they already served notices.
Picture: N509FZ, Wikimedia Commons
