Xiaomi announces Staff Cuts Planned with Strategic Overhaul in India

Xiaomi India, a prominent smartphone company, is going through a challenging period.

On one hand, it is grappling with a declining market share in India, while on the other hand, it is facing increased scrutiny from government agencies.

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In response, the company is planning significant changes to its Indian operations, potentially leading to a large-scale reduction in its workforce (Xiaomi India Layoffs).

Concerns about Mass Layoffs

According to several current and former employees of Xiaomi India who spoke with ET, there are indications of impending massive layoffs as the company prepares to overhaul its Indian business.

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The goal is to reduce the number of employees to less than 1000, down from the 1,400-1,500 employees earlier in 2023.

Centralized Decision-Making from China

This isn’t the first time Xiaomi India has implemented layoffs.

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The company recently laid off approximately 30 employees.

ET reports that due to extensive changes in Xiaomi India’s business structure, most decision-making authority now resides with the parent company in China.

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Consequently, the Chinese headquarters has assumed control over the majority of operational decisions for Xiaomi India.

Sliding to Third Place

During the first quarter of 2023, Xiaomi India experienced a significant drop in smartphone shipments, reaching just 5 million units.


In comparison, the figure stood at 7-8 million units the previous year.

Xiaomi India, which had long held the top position in the Indian market, has now slipped behind.


Samsung currently holds the leading position, with Vivo securing second place.

ED’s Seizure of Assets

Adding to Xiaomi India’s woes, the company has recently faced action from government agencies.

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The Enforcement Directorate (ED) has seized bank assets worth over Rs 5,500 crore, alleging improper transfer of funds abroad by Xiaomi India.

The company has legally contested these allegations and the asset confiscation.

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