Many technology giants around the world have laid off their employees in recent months due to the events following the COVID-19 pandemic. Companies like Meta, Amazon and Twitter had said goodbye to tens of thousands of employees. Today it was announced that car giant Tesla will take a similar step in the first months of 2023.

Now, many news agencies, the Chinese technology giant Xiaomi’s announced its intention to take such a step. Incoming information showed that the company will lay off nearly 10% of its staff. Although details on the subject are not shared by the company that recently introduced the Xiaomi 13 series, this rate is nearly 3500 people It shows that he will be fired.

Company lays off employees due to loss of revenue and declining smartphone sales

It is also one of the news reports that Xiaomi will lay off people from many different departments, including smartphone and internet. According to CNN, the tech giant’s move will generate revenue in the third quarter of this year compared to the same period in 2021 due to COVID restrictions in China and reduced demand for electronic devices. 10% drop come later. It accounts for 60% of the company’s revenue. Smartphone sales also fell by 11%. Let’s not go without adding. These factors lead to a reduction in the workforce.

Xiaomi took a similar step during the year and 1500 people in the first nine months of 2022 reduced its workforce. Published documents show that the company is mainly in China as of September in total. 35000 He showed that he had an employee. With the new layoffs, we can predict that this number will fall between 31,500 and 32,000.

The layoffs at the tech giant come at a time when China is grappling with growing economic problems. Three years of epidemic restrictions have hit businesses from many different industries hard increase in unemployment had caused. Statistics released by the government showed that urban unemployment rose by 5.7% to the highest level in recent months. It was also found that youth unemployment reached high levels.

We can say that the technology sector, which is one of the most prominent in the country, was also affected by the crisis. According to CNN estimates, e-commerce company Alibaba laid off 15,000 employees in its first nine months, while gaming giant Tencent laid off 4,000 over the same period. This move by Xiaomi also revealed that the layoffs will continue and that the unemployment problem in the country will increase.