Xiaomi India Layoffs: Xiaomi India, a Chinese company that has earned a lot of name in the Indian smartphone market – especially in the budget segment – has been facing many challenges in the country for some time now.
In fact, on the one hand, the decline in the market share of the company has become a major problem, on the other hand, due to the strictness being exercised by the agencies of the Government of India, a big crisis seems to be facing the company.
Perhaps due to these reasons, the company has now made up its mind to make major organizational changes within the country, under which it has been decided to reduce the total number of employees as well. Let me tell you, this has been revealed in a recent report by Economic Times (ET).
According to the report, looking at the figures of the last two quarters, the company’s market share in India is continuously decreasing. This is also the time when government agencies in the country are probing allegations of ‘financial irregularities’ against the company. The effect of these things is now being seen in the form of retrenchment.
It has also come to the fore that Xiaomi India has already fired around 30 employees in the past few days. And as part of its organizational restructuring plan, the company intends to reduce the total workforce in the country to less than 1,000.
Xiaomi is believed to have a total of 1400-1500 full-time employees in India till the beginning of this year. So if the talk of reducing the employee count to less than 1,000 turns out to be true, it would clearly be a cut of more than 30%.
Meanwhile, quoting the report, it was said on behalf of the company that the decision to reduce the number of employees depends entirely on the position of the company in the country’s market, as and when required, on layoffs or new recruitments. can be decided.
Xiaomi India Layoffs: What could be the reason?
We all know that when it comes to the budget segment in the Indian smartphone market, it has been dominated by Xiaomi and its related brands for a long time, which has not diminished even today. But all the brands like Samsung, Motorola are also gearing up to give tough competition in this segment and in such a situation the challenge for the company has increased.
Also, in view of the increasing tension between India and China in recent years, the government seems to be taking a tough stance on mobile companies after Chinese apps. In such a situation, it is obvious that the company should be a little worried about its future in the country and at present, while cutting expenses, try to remain stable in terms of operations.