On June 30th, Gizcoupon reported that Xiaomi had experienced declining market share and faced government scrutiny. It seems to have made the decision to undertake a large-scale layoff.
An employee from Xiaomi revealed to the Indian Economic Times that the company’s workforce had been reduced from around 1400-1500 employees to about 1000. According to reports, the brand has dismissed approximately 30 employees in just the past week. Moreover, there may be more layoffs in the coming months.
Xiaomi Responds
In response, a Xiaomi India spokesperson stated, “Like other companies. We will make personnel adjustments based on market conditions and business forecasts. The local leadership in India has been authorized.” He also added that the company will hire new employees when needed.
In addition, Xiaomi executives revealed that the leadership team had been instructed. They want to conduct performance appraisals for some team members. This will determine whether their contracts can be terminated.
According to data from Counterpoint Research, Xiaomi’s market share decline is primarily attributed to weak demand in the sub-10,000 Indian Rupees (approximately $123) segment, where Xiaomi’s sales were the highest. This segment’s shipment declined by 44%, marking the brand’s largest-ever decline. Counterpoint also stated that the company’s performance in 2023 was mediocre. At the same time, shipments have dropped significantly year-on-year.
Xiaomi entered the Indian market in 2014 and rapidly rose to become the top smartphone brand in India in the third quarter of 2018. However, like many other Chinese companies recently, Xiaomi has been facing pressure from the Indian government.
The former head of Xiaomi India, Manu Kumar Jain, resigned in June 2021. Alvin Tse, former head of Xiaomi’s Indonesia business, took over as the General Manager. Subsequently, Muralikrishnan B was promoted to President of Xiaomi India.
Several employees informed the Economic Times that all key team leaders responsible for online and offline sales, distribution, marketing, and product categories directly report to Tse. Tse participates in all meetings and makes most decisions, including performance evaluations, after discussions with headquarters through the Business Management Committee (BMC). Another Xiaomi executive mentioned that the BMC includes members of the Indian leadership team.
