Chinese technology company Xiaomi’s plans to reduce its workforce have come to light. According to a report by Economic Times, the company is taking steps to reduce its employee count to below 1,000 due to corporate restructuring, a decline in market share, and increased government scrutiny.
Is Xiaomi’s business deteriorating in India?
The report indicates that Xiaomi India, which had approximately 1,400-1,500 employees at the beginning of 2023, has recently laid off 30 employees and may carry out further layoffs in the future. The company has reduced its workforce to improve operational efficiency and respond to changing market dynamics. Due to the decline in market share, the company is actively reviewing its organizational structure and resource allocation strategies.
However, the challenges faced by Xiaomi India are not limited to layoffs alone. As a result of an investigation by the Enforcement Directorate (ED), Xiaomi Technology India Private Limited, Chief Financial Officer Sameer Rao, former Managing Director Manu Jain, and three banks have been issued show-cause notices for violations of the Foreign Exchange Management Act (FEMA), involving illegal remittances amounting to a total of 5,551.27 crore rupees.
According to officials, the Enforcement Directorate (ED) initiated this action based on its investigation into Xiaomi India and its top executives. During this process of legal and regulatory scrutiny of Xiaomi’s operations in India, the company’s future is filled with uncertainties.
Xiaomi India has a wide user base in the Indian market, offering smartphones and electronic products. However, recent market share decline and increased government scrutiny have forced the company to make significant decisions and restructure its operations. Xiaomi’s strategy regarding layoffs and investigations will become clearer in the future.
Xiaomi India’s plans to reduce its workforce have gained attention due to corporate restructuring, a decline in market share, and increased government scrutiny. The company’s future is closely monitored in terms of how it will respond to these challenges and shape its strategy.
