Xiaomi, the Chinese mobile phone and consumer electronics maker, plans to reduce its global workforce by about 10 percent, a move estimated to affect roughly 3,500 employees according to multiple local media outlets citing a company spokesperson. The decision reflects a strategic shift aimed at aligning the organization with its current business priorities and market conditions.
The company stated that the layoffs are a matter of organizational fit and staff optimization. It emphasized that those impacted will receive compensation in line with local laws and regulations in each country where they operate, ensuring a structured severance process and transitional support. This approach mirrors common practices in the tech sector when adjusting staffing to reflect evolving product lines and regional demand.
Financially, Xiaomi reported a drop in profitability for the recent quarter, with net income figures showing a decline when compared with the same period in the prior year. In the July to September interval, revenue reached 70,474 million yuan, but this represented a year-over-year decrease. The company disclosed a loss of 1,476 million yuan for the period, contrasting with a net profit of 792 million yuan recorded in the third quarter of 2022 for the corresponding quarter in 2021. Market observers will be watching how the workforce reduction intersects with product launches, supply chain management, and regional growth strategies as the company navigates a more competitive global landscape. The details provided come from the company through its spokesperson and are aligned with standard disclosure practices in cross-border operations.