As a part of its organisational rearrangement, Xiaomi India is cutting its workforce to bring the headcount below 1,000, The Economic Times (ET) has reported. The decision has come after the company registered a downfall in its market share combined with increased scrutiny by government agencies, the report cited Xiaomi's present and ex-employees.
Xiaomi India had 1,400-1,500 employees on its rolls at the beginning of 2023. The company fired 30 employees in the last week with more layoffs expected in the coming months, the ET report said.
The employees cited in the report said that the company had placed the responsibility of business restructuring in the hands of the Chinese parent and the company is now cutting jobs since the start of this year.
Talking about the layoffs, Xiaomi said, "As with any company, we take headcount decisions based on the market's state and business projections." The company added that Xiaomi continues to hire talent "when and where needed".
Citing a senior executive in the company, the report added the leadership team had planned a performance improvement plan (PIP) for the employees. Later, employees on PIP could be ousted on the grounds of lacklustre performance, the report added.
The recent layoffs are a part of the overhaul the company is planning for its internal structures. Most decisions regarding the structural changes are being taken by the Chinese parent.
Several employees believe that giving the decision-making to the Chinese counterpart is the primary reason behind the company's declining sales and slipping market share, the ET reported.
Notably, Xiaomi has seen a consistent decline in its sales. The company has lost market share to similar, budget smartphone manufacturers from China which include Realme, Oppo, and Vivo.