Drone maker DJI denies report it is set to make sweeping job cuts amid rising tech tensions
- Washington and New Delhi are pushing back against China’s tech champions for an array of political and national security concerns
Chinese drone maker DJI has denied a news report that it is planning sweeping job cuts amid headwinds from Covid-19 and mounting tech tensions between China and the US.
A Reuters news report on Monday said the Shenzhen-based drones giant was planning “sweeping cuts” to its global sales and marketing teams and was looking to “trim the fat” from its roughly 14,000-strong workforce, amid hits from the coronavirus pandemic and US political pressure in key markets, citing multiple former and current staff.
Xie Tiandi, DJI’s head of public relations, cautioned media against reading too much into the news report in a WeChat Moments post on Monday and suggested they wait a little before quickly coming to conclusions.
“In truth, DJI has made some important structural changes and our business is thriving, as both personal and professional customers around the world are embracing drones in an era of social distancing,” DJI said in a statement on Wednesday, which also said the Reuters report had created “some inaccurate impressions”.
Chinese tech companies, having helped in the fight against Covid-19, are now facing political headwinds in both the US and India, with Washington and New Delhi pushing back against China’s tech champions for an array of political and national security concerns.
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Indian media reported that Alibaba Group Holding’s subsidiary UC Web has suspended operations in India and has laid off almost 90 per cent of its 350 workers there, after the government blocked more than 59 apps following a deadly border clash between China and India. Meanwhile, TikTok parent ByteDance is reported to have halted hiring in India following a ban although TikTok’s CEO Kevin Mayer has made assurances that there will not be any lay-offs.
The US Department of the Interior in January grounded DJI’s entire fleet and other Chinese-made drones on national security grounds, citing fears that data privacy could be breached. The Trump administration is also considering banning federal departments and agencies from buying or using foreign-made drones.
The New York Times published a report last month that an app used by DJI drones “collects large amounts of personal information that could be exploited by the Beijing government”.
DJI’s spokesman declined to comment on the report, except to say the company does not want to get involved in cultural, political, or economic frictions.
Alibaba is the parent company of the Post.
