Xiaomi India To Reduce Employment to Less than 1000: Here’s Why

Xiaomi India is reportedly reducing its employment to less than 1,000 employees under greater regulatory scrutiny and declining market share. According to media reports, the Chinese company let go of 30 workers last week out of the 1,400 to 1,500 they had at the beginning of the year. Xiaomi India has created a performance improvement plan (PIP) based on which underperforming workers will be released.

Xiaomi reevaluating business strategy

According to reports, the Chinese parent company of Xiaomi, a well-known smartphone brand in India, is making decisions about internal reorganisation and changes. The corporation claims these changes will improve organisational efficiency, maximise resource allocation, and improve operational effectiveness. The corporation has been examining its strategies all year, which has caused a continuous decrease in employment.

Xiaomi India is having problems

Xiaomi India saw a decline in shipments in the first quarter of 2023, selling only 5 million units as opposed to 7-8 million the year before. Due to this decline, Xiaomi has lost its top smartphone brand ranking in India, which it had maintained for 20 straight quarters. With a 16% market share, it is currently third, behind Vivo and Samsung.

Additionally, under the Foreign Exchange Management Act, the Enforcement Directorate, India's economic intelligence agency, sent show-cause notifications to Xiaomi India, its officials, and three banks in June. Over 5,551 crore worth of foreign exchange breaches are allegedly involved in the charges. Manu Kumar Jain, the company's former managing director, and Sameer B. Rao, it's director and chief financial officer, received show-cause letters.

India-China relations are ‘abnormal'

Xiaomi India now finds itself at the centre of deteriorating relations between China and India. S. Jaishankar, India's minister of external affairs, claimed earlier in April that Beijing's violations of border control agreements were to blame for India and China's "abnormal" relationship.

FAQ's 

Is Xiaomi India a corporation based in India?

Xiaomi - Wikipedia Data collection and privacy issues. Xiaomi is required by the China Internet Security Law and National Intelligence Law to share data with the Chinese government as a Chinese-based business.

Who is Xiaomi India's owner?

In July 1991, Lei Jun, born in December 1969, graduated with a bachelor's degree in computer science from Wuhan University. He serves as the Group's Executive Director, Founder, Chairman, and CEO. He oversees the Group's overarching strategy, culture, and significant products. The senior management group is also under his control.

Why has Xiaomi been so prosperous in India?

Sharma claims that one of the main factors contributing to Xiaomi's success in India was its ability to establish a devoted customer base quickly. "We credit our deep connections with the Mi fans for our enormous success.