Xiaomi Announces Major Workforce Reductions Across Multiple Divisions
Recent reports indicate that Xiaomi is preparing substantial workforce reductions across several departments, signaling a broad restructuring move that could reshape the company’s internal priorities. The upcoming layoffs are expected to touch nearly every division, with emphasis on streamlining operations within the mobile devices and internet services segments. In some units, reductions could reach as high as 40 percent of staff, while other departments may see more drastic cuts, potentially approaching 75 percent. In total, the company is anticipated to see a decline in headcount that could impact roughly 15 to 20 percent of its workforce, a figure that aligns with the company’s total employee base of around six thousand individuals. These numbers illustrate a significant recalibration of resources as Xiaomi pivots to new strategic priorities and efficiency targets.
Compensation for departing employees is described under an N+2 framework, meaning that each dismissed worker will receive at least three months of salary as part of a severance package. This approach is positioned as an effort to provide financial stability during the transition period and to acknowledge the contributions of staff members who are leaving the organization. The reported plan has generated mixed reactions among current employees, with many expressing appreciation for the enhanced severance terms while others assess how the changes will affect long-term career security and morale within the company.
These developments come in the broader context of observed layoffs within the technology sector. Earlier reporting noted that Google was evaluating the possibility of reducing its workforce by around 10,000 roles as part of a broader cost-control effort. The trend of staff reductions has also been visible at other major tech firms. For instance, a public statement from a high-profile executive at Meta indicated a substantial reduction in headcount, with figures approaching 11,000. At Tesla founder Elon Musk’s organization, discussions around workforce adjustments included sizable cuts in certain teams, with some estimates suggesting a significant portion of the staff could be affected. In the retail and tech ecosystem, Amazon was also reported to be pursuing sizeable layoffs affecting thousands of employees. These parallel moves underscore a shifting landscape in which large technology companies continually reassess size, efficiency, and strategic alignment in response to market dynamics and organizational priorities.
Analysts note that Xiaomi’s current strategy appears to emphasize capital efficiency and a leaner organizational structure while preserving core product and service capabilities. The pace and scope of the planned changes suggest careful consideration of which roles are essential to the company’s near-term goals and long-term competitiveness in an increasingly challenging global market. Observers also emphasize the importance of how such transitions are managed—balancing fair treatment of departing personnel with the need to maintain morale and performance among continuing staff, and ensuring that the company retains critical technical and customer-facing capabilities. In this environment, Xiaomi’s leadership faces the challenge of implementing reductions in a way that minimizes disruption to ongoing projects, preserves critical institutional knowledge, and sustains momentum for innovation across devices, software, and services.
Overall, these developments reflect a broader pattern in which major technology companies continuously reassess workforce composition to align with evolving business models, revenue streams, and competitive pressures. Stakeholders will be watching closely to see how Xiaomi translates its restructuring plan into tangible outcomes, including the impact on product timelines, market positioning, and investor confidence. The situation remains dynamic, with ongoing reporting likely to provide updates on the scale, timing, and execution details of the workforce changes across Xiaomi’s global operations. [citation: Portal] [citation: Gadget Trend]