Chinese smartphone manufacturer Xiaomi has started laying off employees in its smartphone and internet services business, according to local media reports. As per some estimates, more than 900 employees have already been impacted by the layoffs that are taking place amid renewed Covid-19 outbreaks in the country.
Other major tech companies in China, such as Tencent Holdings and Alibaba Group, have been laying off its employees in recent months as Covid-19 continues to adversely impact the country's economy. According to South China Morning Post, Xiaomi had 35,314 staff as of September this year, and 15 per cent of the workforce would be affected by the present bout of layoffs.
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However, a spokesperson associated with Xiaomi has said that the "personnel optimisation and organisational streamlining" practice would affect less than 10 per cent of the company’s workforce. They also added that the affected have been recompensed as required by local regulations.
Across the world, tech companies have been laying off large sections of its workforce as the world is stepping into a global economic slowdown. Thousands of people in the tech sector have lost their jobs in the past few months as Meta, Twitter, Amazon, Adobe, HP and others started trimming down its headcount.
Even in India, companies such as Swiggy, Zomato, Vedantu and Byju's have been involved in a slew of layoffs aimed at cutting costs. Media reports indicate that the layoffs may continue in the coming months.
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