[The Epoch Times, December 20, 2022](Comprehensive report by Epoch Times reporter Chen Ting) Recently, it was rumored that the Chinese mobile phone giant “Millet“There will be another wave at the end of the yeardownsizing. Sources said the layoffs might be as high as 15%. Xiaomi said on Tuesday (December 20) that this wave of layoffs is “personnel optimization at the end of the year”, and said that the actual number of people affected is less than 10% of the total.
According to a report by the South China Morning Post on Tuesday (December 20),MilletOn the grounds of “personnel optimization”, in multiple departmentsdownsizingmultiple social media in China were flooded with posts regarding layoffs.
The report quoted Jiemian News as saying in an interview with employees of various departments of Xiaomi,millet companyThe mobile phone department, the Internet department, the China department and many other departments of the company have all been abolished, but the degree of layoffs varies between departments. Among them, the proportion of layoffs in individual departments in China is as high as 75%, and the Internet Department also has a team layoff of 40%. Sources estimate that layoffs may be as high as 15% of the overall workforce.
According to Xiaomi’s financial report, as of September 30, Xiaomi had 35,314 employees, of which more than 32,609 were in China. As a result, the latest move might affect thousands of employees, many of whom were newcomers to the company during a December hiring spree.
Xiaomi said in a statement that the recent implementation is the normal year-end personnel optimization and organization streamlining, the actual number of optimized personnel is less than 10% of the overall number, and the compensation plan for these personnel also complies with labor law requirements.
The South China Morning Post pointed out that layoffs in Chinese companies are usually carried out in the name of “business optimization” to avoid scrutiny from the labor department. According to Chinese labor law, layoffs affecting more than 20 positions must be submitted to the government for review.
Xiaomi is the fifth largest in the Chinese marketsmart phonesuppliers, with a market share of regarding 13% in the third quarter.
According to Xiaomi’s third-quarter financial report released in November, revenue fell by 9.7% to RMB 70.47 billion (approximately US$10.1 billion), while net profit fell by 59.1% to 2.21 billion yuan (regarding 3.17 U.S. dollars).
Xiaomi said that regarding 60% of total salessmart phoneRevenue fell by 11% year-on-year.
Responsible Editor: Ye Ziwei#
