Chinese smartphone maker Xiaomi denies job cuts as it pushes ahead with EVs, high-end phones

Xiaomi, which employs more than 31,000 people, has ‘never conducted any lay-offs’ since it was established 12 years ago, a company spokesperson said

The company has also started building its first electric vehicle factory on the outskirts of Beijing, a new investment that is putting pressure on its core smartphone business

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Xiaomi MIX 4 smartphones are displayed at a Xiaomi store in Beijing, Sept. 08, 2021. Photo: SCMP/Simon Song

Published: 7:30pm, 16 Feb 2022Updated: 9:29pm, 16 Feb 2022

Chinese tech firm Xiaomi, which has an ambitious plan to become the world’s No 1 smartphone brand within three years, has denied reports it is trimming 10 per cent of its payroll amid ongoing investments in electric vehicles (EVs) and high-end phones.

Xiaomi, which employs more than 31,000 people, has “never conducted any lay-offs” since its incorporation in Beijing in 2010, a company spokesperson said on Wednesday, adding that it has about 4,000 job openings.

Reports have circulated on social media that the company, now the world’s No 3 smartphone brand, was trying to persuade about 10 per cent of staff, particularly new hires, to quit.

The denial comes just days after Lei Jun, Xiaomi’s founder and CEO, said the company will ratchet up its challenge to Apple by focusing on the high-end segment of the global smartphone market.

“[We aim to] fully benchmark against Apple in [terms of] product and experience, and become China’s biggest high-end brand in the next three years,” Lei said in a post on microblogging platform Weibo last week, adding that the company’s strategic goal was still to become the world’s largest smartphone vendor over the same period.

In March last year, Xiaomi announced it would invest in the EV industry in China, and it started building its first EV factory on the outskirts of Beijing in November, according to a local government announcement.

However, the shift is putting pressure on Xiaomi’s smartphone business, which faces fierce competition from local and foreign brands, because its EV investment is a long way from delivering revenues and profits.