Chinese smartphone maker Xiaomi has sacked more than 900 employees or three per cent of its workforce after the company posted weak quarterly earnings, according to a report by South China Morning Post. The company is yet to confirm the news.
Hurt by COVID lockdown in China, the world’s largest smartphone manufacturer reported a 20 per cent loss in sales year-on-year to 70.17 billion yuan ($10.31 billion)
Chinese smartphone maker Xiaomi has sacked more than 900 employees or three per cent of its workforce after the company posted weak quarterly earnings, according to a report by South China Morning Post. The company is yet to confirm the news.
Hurt by COVID lockdown in China, the world’s largest smartphone manufacturer reported a 20 per cent loss in sales year-on-year to 70.17 billion yuan ($10.31 billion). Notably, the company’s smartphone sales fell 29 per cent, which generates more than half of the company’s total revenue.
During the company's quarterly earnings meeting, Wang Xiang, Xiaomi's President said, “In the Chinese market, there was the resurgence of the pandemic, so as a result, demand was difficult and weak.”
“Rising fuel prices, input costs, and inflation affected overseas sales as well. Net profit fell as a result of pressure to clear inventory via sales and promotions,” Wang added.
Notably, in 2021, the company witnessed strong sales thus grabbing market share from rival Huawei Technologies Co Ltd in China, according to a Reuters report.
Meanwhile, in India, which is Xiaomi’s second-largest market, the company has been under the government’s scrutiny for tax evasion. In April, this year, the Enforcement Directorate seized Rs 5,551 crore from Xiaomi India for violations under the Foreign Exchange Management Act. As per a report by Counterpoint Research Market in the first quarter of 2022, Chinese brands held a 74 per cent market share in the domestic smartphone sector. Out of this, Xiaomi held a 23 per cent market share, thus becoming the leading Chinese smartphone manufacturer in India.