Xiaomi has started laying off its employees amid the unemployment crisis weakening China’s economy.
Major tech giant companies in the world such as Meta and Twitter, have been laying off employees as well, in efforts to reduce costs and regain stability after the menace that was Covid 19.
The Beijing-based firm recently conducted a “routine personnel optimization and organizational streamlining,” a Xiaomi spokesperson told CNN.
The measure affects less than 10% of its total workforce.
In the first nine months of 2022, Xiaomi reduced its workforce by nearly 1,900, according to its financial documents. By the end of September, it had around 35,000 full-time employees, most of whom were based in China.
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The company’s revenue fell nearly 10% in the third quarter of this year from a year earlier, hurt by China’s Covid restrictions and softening global demand for electronics. Sales from smartphones, which account for 60% of its revenue, dropped 11%.
The jobless rate in China for those aged 16 to 24 reached 17.1% in November, hovering near July’s record level of 19.9%.