Xiaomi reportedly opens multi-sectoral layoffs

Xiaomi, a Chinese technology company that has seen a decline in revenue and profit since the beginning of this year, has reportedly carried out a relatively large round of layoffs recently, involving various departments including the mobile phone department and the Internet department, and the layoff ratio may reach 15%.

According to Jiemian News on Monday (December 19), employees from various departments of Xiaomi revealed that the company has recently started a round of layoffs, and the compensation plan is N + 2 (N + 2 months' salary compensation for working years).

A Xiaomi employee said that the layoffs are large in scale. As far as he knows, many departments including the mobile phone department, the Internet department, and the China department are involved, but the layoffs vary from department to department. The employee said that the proportion of layoffs in individual departments in China is as high as 75%, and the Internet department also has a team layoffs of 40%.

In response to the specific layoffs, the employee said that Human Resources' communication is "easy to talk about", and many laid-off employees are relatively satisfied with the N + 2 compensation plan. Some employees even think that according to the situation this year, the compensation plan may be better than the annual bonus. According to the report, after taking N + 2, employees with three years of experience revealed that they worked "more than 7 months than normal".

The scale of the overall layoffs in this round is not yet clear, but according to the estimates of Jiemian News, the overall intensity may reach 15%. The report also said that it has been revealed that Xiaomi plans to lay off 6,000 people on a large scale. According to this figure, the layoffs will be close to 20%. According to Xiaomi's third-quarter earnings report, as of September 30 this year, Xiaomi Group had a total of 35,314 full-time employees, of which 32,609 were located in the Chinese mainland.

In response to the above news, Xiaomi has not commented yet.

public data show that Xiaomi's adjusted profits in the first three quarters of this year were 2.86 billion yuan (RMB, the same below, about 550 million Singapore dollars), 2.08 billion yuan and 2.12 billion yuan, compared with the level of 5 billion or 6 billion yuan in the single quarter of 2021, respectively, down 52.9% year over year, 67.1% and 59.1%. In addition to the decline in single-quarter revenue year over year, Xiaomi's investment in car manufacturing is also gradually increasing, with a total of 1.865 billion yuan.

Wang Xiang, president of

Xiaomi Group, mentioned at the third-quarter earnings conference that "reducing costs and increasing efficiency" is what the company has been doing since the beginning of this year, and is still making further plans on how to mention staff efficiency and reduce costs. "In order to improve the overall performance next year, we will continue to carry out the work of reducing costs and increasing efficiency."  

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