Xiaomi cuts over 900 jobs globally as Q2 revenue drops 20%: Report

Chinese smartphone giant Xiaomi has cut more than 900 jobs amid the ongoing economic crisis as its revenue fell nearly 20% in the June quarter (Q2), media reported on Saturday.

According to the South China Morning Post, the layoffs affected nearly 3% of Xiaomi’s workforce.

As of June 30, 2022, the company had 32,869 full-time employees, of which 30,110 were based in mainland China, primarily at its headquarters in Beijing, with the remainder primarily based in India and Indonesia.

The company had 14,700 employees in its research and development vertical during the same period.

“During this quarter, our industry faced many challenges, including rising global inflation, fluctuating exchange rates (and) a complex political environment,” said Xiaomi President Wang Xiang. , in a call with analysts after announcing its quarterly results on Friday.

“These challenges had a significant impact on overall market demand and our financial results for the period,” Xiang said.

Smartphone segment revenue fell 28.5% from 59.1 billion yuan in the second quarter of last year to 42.3 billion yuan this year, “mainly due to lower sales of our smartphones.

“In the second quarter of 2022, global macroeconomic turmoil and the resurgence of Covid-19 continued to impact overall market demand for smartphones,” Xiaomi said.

Global smartphone industry shipments were down 8.9% year-on-year and 7.7% quarter-on-quarter, and mainland China industry shipments were down 10.1% year-over-year and 10.9% quarter-over-quarter, according to Canalys. .

Earlier, Chinese conglomerate Tencent laid off 5,500 employees, after posting revenue of $19.8 billion in the June quarter, down 3%, the first decline since its listing. in stock exchange.

Several big tech companies, unicorns and startups have laid off employees amid global macro conditions.



(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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