Xiaomi India is facing multiple challenges, including a decline in market share, government scrutiny, and the need for organizational restructuring. To address these issues, the company is reducing its headcount to less than 1,000 employees. The recent layoffs, which have already affected around 30 employees, are expected to continue in the coming months.
One of the reasons behind the layoffs is Xiaomi India’s restructuring process. Decision-making power has been shifted to the Chinese parent company, while the local Indian leadership has been “empowered.” This has resulted in the closure of certain departments and the consolidation of others.
The decline in market share is another significant factor contributing to the layoffs. Xiaomi India was once the leading smartphone brand in the country, but it has been surpassed by competitors like Samsung and Vivo. Increased competition, the ongoing chip shortage, and government scrutiny of Chinese companies have all played a role in this decline.
While Xiaomi India remains committed to the Indian market, the impact of the layoffs on its long-term prospects is uncertain. These measures indicate that the company is taking its challenges seriously. However, it remains to be seen whether these actions will be sufficient to reverse the situation and regain market share.
