Xiaomi to lay off 10 pc of its workforce

Chinese smartphone maker Xiaomi is planning to lay off 10 per cent of its workforce, joining other Chinese firms like Tencent Holdings and Alibaba Group that have been laying off their employees in recent months.

A Xiaomi spokesperson said on Tuesday that the company's "personnel optimsation and organisational streamlining" practice will "affect less than 10 per cent of total workforce."

Those who are affected by the job cuts would be compensated in compliance with local regulations, the spokesperson said in a statement.

On Monday, local media had reported that job cuts would affect 15 per cent of Xiaomi's workforce. As of September 30, the company had 35,314 staff, of which 32,000 are based in mainland China.

The smartphone makers had reported a 9.7 per cent decline in its third-quarter revenue, resulting due to restrictions imposed because of the pandemic. Year-on-year, the sales fell by 20 per cent.

Earlier in August, the company had sacked three per cent of its workforce across the globe.