Xiaomi India is set to lay off employees bringing the headcount to less than 1000 amid organisation rejig, a slump in stock market share, and intense scrutiny by government agencies on the Chinese smartphone brand.
Xiaomi India which employed 1,400-1,500 people at the start of 2023, laid off around 30 people in the past week or so, more are likely to be given a pink slip in the coming months, as per the ET report.
The company has been reducing the headcount steadily since the start of the year. They said that the business restructuring has vested most of the decision-making in the hands of the Chinese parent.
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The Xiaomi spokesperson said that the headcount decisions were a function of business outlook and that the local Indian leadership has been ‘empowered’.
“As with any company, we take headcount decisions based on the market’s state and business projections,” Xiaomi said, adding that the firm continues to hire ‘when and where needed’, as per the ET report.
Another senior executive working at the company said the leadership team at the start of the year was nudged to designate a part of their respective teams for a performance improvement plan (PIP). These employees could then be easily let go on performance grounds.
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The layoffs come with the company rejigging its internal structures, with most of the decisions now being taken by the Chinese parent- a change that several employees said was at the heart of the company’s slipping market share.
Xiaomi India's shipments fell to 5 million in the first quarter of 2023, from 7-8 million a year ago, and it slipped to the third position behind Samsung and Vivo with a market share of 16% after being the top smartphone brand in India for 20 straight quarters.
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