Xiaomi Layoffs: Chinese Smartphone Maker to Sack 15% Workforce From Multiple Departments

Affected employees are reportedly receiving N+2 compensation, which includes double pay for unused vacation days.

Xiaomi Layoffs latest update: Chinese smartphone maker Xiaomi may lay off workers from multiple departments, as it aims to reduce 15 per cent of its workforce amid the rough global macroeconomic conditions and local Covid-19 lockdowns, the South China Morning Post reported, citing several social media posts by affected Xiaomi employees and local Chinese media reports.

Reportedly, China’s social media platforms, including Weibo, Xiaohongshu and Maimai, have been flooded with posts about the job cuts. The extent of the lay-offs is unknown and “Xiaomi declined to comment”, according to the report that came out late on Monday.

Xiaomi had 35,314 employees as of September 30, with more than 32,000 in mainland China.

According to a report by Chinese media outlet Jiemian, Xiaomi will cut jobs in several units of its smartphone and internet services business.

Gizmo China reported that some departments have seen layoffs of up to 75 per cent, while others have had around 40 per cent of their teams cut.

Affected employees are reportedly receiving N+2 compensation, which includes double pay for unused vacation days.

The news of the layoffs comes as Xiaomi’s financial performance has been under pressure in 2022.

The Beijing-based tech giant started laying off workers this year amid weaker sales due to Covid-19 lockdowns in China and slower consumer spending.

It is estimated that the number of layoffs in this round may reach 6,000.