Xiaomi India to Undergo Business Restructuring According to Reports

The Number of Employees Has Dropped to Around a Thousand!

On the 29th of June of the current year, a piece of news was reported which stated that Xiaomi, a Chinese tech company, has decided to implement an extensive reduction of employees after encountering a decrease in their market share and facing scrutiny from the government.

An individual who is an employee of Xiaomi provided information to the “Economic Times” tech publication in India that the number of employees within the company has been reduced from a number between 1,400 and 1,500 to a number which is approximately 1,000.

It has been reported that the brand has already terminated approximately 30 employees during the preceding week alone, and it is possible that additional terminations may take place during the upcoming months.

xiaomi india

In response to this situation, a spokesperson representing Xiaomi India made a statement that the company will make decisions concerning personnel adjustments based on market conditions and business forecasts and that the local leaders in India have been authorized to do so. The spokesperson further added that the company will hire new employees as required.

Furthermore, an executive of the brand revealed that the leadership group was instructed to assign a certain portion of the team to undergo a performance review to determine whether their employment contracts should be terminated.

Counterpoint Research data has suggested that the decline in Xiaomi’s market share is mainly because of weak demand in the segment below Rs 10,000, which is the highest sales volume of Xiaomi. The brand’s shipments in this segment have declined by 44%, which is the biggest decline they have ever recorded.

Additionally, Counterpoint has reported that the company’s performance in 2023 is flat, with shipments down sharply year-over-year.

Xiaomi entered the Indian market in the year 2014 and quickly became prominent in the third quarter of 2018. They managed to maintain their position as the number-one smartphone brand in India since then. However, in recent months, the pressure from the Indian government has been ramping up on Xiaomi like many other Chinese companies.

The previous India business head, Manu Kumar Jain, departed from Xiaomi in the month of June during the year 2021. The former Xiaomi Indonesia business head, Alvin Tse, then took over as the general manager, and subsequently, Muralikrishnan B was promoted to president of India business.

Several employees who work for Xiaomi have informed The Economic Times that all key team leaders responsible for online and offline sales, distribution, marketing, and product categories report directly to Tse.

Tse makes decisions through a business management committee after discussing things with headquarters. He also attends all the meetings according to sources familiar with the matter. Another exec at Xiaomi stated that the Business Management Committee has members of the Indian leadership.

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An android fan who is often found playing Counter-Strike in his free time, wannabe photographer, Engineering Graduate!

Xiaomi India to Undergo Business Restructuring According to Reports

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