Xiaomi India is slashing its workforce to less than 1,000 employees as part of a restructuring process, according to a report published in Economic Times. The report indicates that the cost-cutting measures come amid a slump in market share accompanied by increasing scrutiny from government agencies, quoting past and present employees.
The company is likely to lay off more people in the coming months, the report added.
Decisions regarding the rejig and changes to internal structures were in the hands of the Chinese parent, the report said. The move aims to improve operational efficiency, streamline its organisational structure and optimise resource allocation. The headcount has steadily decreased since the beginning of the year amid a review of the company strategies.
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Citing a senior Xiaomi executive, the report added that the top leadership had designed a performance improvement plan (PIP) based on which non-performing employees could be fired.
“As with any company, we take headcount decisions based on the market’s state and business projections,” the report quoted Xiaomi in a statement, adding that the firm continues to hire talent ‘when and where needed’.
Xiaomi India’s shipments dropped to 5 million in the first quarter of 2023 from 7-8 million a year ago. After being the top smartphone brand in India for 20 straight quarters, it fell to the third rank behind Samsung and Vivo with a market share of 16%.
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