Xiaomi Cuts More Than 900 Jobs; Twitter Employee's Annual Bonus Slashed to Half

Smartphone giant Xiaomi has cut more than 900 jobs as the Chinese economy is witnessing a slowdown. The smartphone giant had revealed that its revenues fell 20 percent in the June quarter.

The layoffs affected nearly 3 per cent of Xiaomi's workforce, according to the South China Morning Post.

job cuts

"In this quarter, our industry faced many challenges, including rising global inflation, foreign exchange fluctuations (and) complex political environment ... These challenges significantly impacted overall market demand and our financial results for the period," Xiaomi president Wang Xiang said in a call with analysts, IANS reported.

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As of June 30, 2022, the company had 32,869 full-time employees, 30,110 of whom were based in mainland China, primarily at its headquarters in Beijing, with the rest primarily based in India and Indonesia.

The company had 14,700 employees in its research and development vertical in the same time-frame.

Mi 10 Youth 5G
Xiaomi Mi 10 Youth 5G smartphone Xiaomi

Revenue from the smartphone segment slumped 28.5 per cent, from 59.1 billion yuan in the second quarter last year to 42.3 billion yuan this year, "primarily due to the decreased sales of our smartphones".

"In the second quarter of 2022, global macroeconomic turbulence and the resurgence of Covid-19 continued to impact overall market demand for smartphones," said Xiaomi.

Global smartphone industry shipments declined 8.9 per cent year-over-year and 7.7 per cent quarter-over-quarter, and mainland China industry shipments declined 10.1 per cent year-over-year and 10.9 per cent quarter-over-quarter, according to Canalys.

Earlier, Chinese conglomerate Tencent fired 5,500 employees, after posting a revenue of $19.8 billion in the June quarter, down 3 per cent which is the first decline since going public.

Several Big Tech companies, unicorns and startups have laid off employees amid the global macro-economic conditions.

Twitter logo
Twitter logo. (Photo: Twitter/@Twitter) IANS

Twitter Employees' Bonuses to be Cut in Half

Meanwhile, employees at micro blogging site Twitter, which is going through a bitter takeover-related battle with Elon Musk will see at least half of their annual bonuses cut as the company faces economic uncertainties.

"The bonus pool currently at 50 per cent of what it could be if the company met its financial targets," Twitter's chief financial officer Ned Segal told the company's employees, according to IANS.

The company employs more than 7,500 people globally. Earlier in the month of July, Twitter had laid off 30 per cent of employees from its talent acquisition team. Twitter earlier paused most hiring and backfills, except for business critical roles as determined by 'Staff' members.