Xiaomi India is reportedly laying off more people in an operational rejig.
According to an Economic Times report, the company has laid off more than 30 employees in the last week.
As per the report, Xiaomi India, which had around 1,400 to 1,500 employees at the beginning of 2023, is planning to reduce its headcount to under 1,000.
The company is expected to let go of more employees in the coming weeks.
Xiaomi India is reportedly planning to reduce its workforce to under 1,000 employees due to organizational restructuring, a decline in market share, and increased scrutiny from government agencies.
According to a report by the Economic Times Xiaomi India, which employed approximately 1,400-1,500 employees at the beginning of 2023, has recently laid off around 30 employees and may lay off additional workers in the future.
According to the report, Xiaomi India has downsized its workforce in order to enhance operational efficiency and respond to shifting market dynamics. Due to a decline in market share, the company is actively reviewing its organizational structure and resource allocation strategies.
Meanwhile, recently the Enforcement Directorate (ED) issued a show-cause notice to Xiaomi Technology India Private Limited, it’s Chief Financial Officer Sameer Rao, and former Managing Director Manu Jain, as well as three banks on Friday, May 9.
The notice came in light of alleged violations of the Foreign Exchange Management Act (FEMA), with illegal remittances amounting to a staggering Rs 5,551.27 crore.
According to officials cited by news agency PTI, the ED initiated the action against Xiaomi India and its key executives based on their investigation into the company’s financial activities.