Xiaomi manufacturer cuts 10% of jobs amid coronavirus outbreak in China – 12/21/2022

Chinese Xiaomi It has begun laying off employees at its smartphone and internet service companies, joining a long list of Chinese tech companies cutting jobs as the country grapples with the Covid-19 outbreak.

A company spokesperson said Tuesday that its practice of “personnel improvement and organizational simplification” will affect “less than 10% of the total workforce,” adding that affected employees have been compensated in line with local regulations.

China’s social media platforms, including Weibo, Xiaohongshu and Maimai, have been flooded with posts about job cuts this week. Chinese local media first reported on Monday that job cuts will affect 15% of Xiaomi’s salaries, citing unnamed sources.

Xiaomi had 35,314 employees as of Sept. 30, according to the South China Morning Post, with more than 32,000 in mainland China. The latest change could affect thousands of workers, many of whom just joined the company during a hiring wave that began in December last year.

In November, the company reported a 9.7% decline in third-quarter revenue, hit by Covid-19 restrictions in China and slowing consumer demand. The company said that smartphone revenue, which makes up about 60% of its total sales, fell 11% year over year.