China's biggest smartphone maker Xiaomi cuts 15 % of workforce

China’s Xiaomi Corp has started laying off workers in several units of its smartphone and internet services business, reducing its workforce by about 15 percent, the South China Morning Post reported on Tuesday. The Hong Kong newspaper cited social media posts by affected employees and local Chinese media, saying China’s social media platforms, including Weibo, Xiaohongshu and Maimai, have been flooded with posts about the job cuts.

The job cuts are reportedly affecting around 15 per cent of the company's workforce, which stood at 35,314 as of 30 September. Around 32,000 of the total workforce is based in mainland China. Many affected by the layoffs had only recently joined the company. Xiaomi had conducted a hiring spree in December 2021. The job cuts come after Xiaomi reported a 9.7% fall in third-quarter revenue in November, due to COVID-19 restrictions in China and declining consumer demand. Smartphone revenue, which makes up around 60% of the company's total sales, fell by 11% year-on-year.

Xiaomi workers impacted by the layoffs have posted their ordeal on various Chinese social media platforms, including Weibo, Xiaohongshu and Maimai. The report claims that the platforms are 'flooded with posts' about Xiaomi job cuts. Xiaomi is one of the biggest smartphone maker in the world and is the biggest in China. The layoffs show the new wave of job cuts have also started impacting Chinese companies