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Xiaomi Announces Major Loss in the Last Quarter

Xiaomi Announces Major Loss in the Last Quarter
Xiaomi Announces Major Loss in the Last Quarter
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Economic uncertainty seems to be hurting Chinese smartphone brand Xiaomi. The company laid off 900 jobs, according to the South China Morning Post . The business cuts came as the company saw a 20% drop in global revenue in the June quarter .

Xiaomi recorded a steep drop in second-quarter revenue as the world’s largest smartphone market shrank due to tight Covid restrictions. The company’s distress appears to be in both India and its home country of China.

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The layoffs affected about 3% of Xiaomi’s workforce . As of June 30, 2022, Xiaomi had 32,869 full-time employees, of whom 30,110 were located mainly at its headquarters in Beijing, People’s Republic of China, and the rest in India and Indonesia. The company had 14,700 employees on its research and development team during the same time period .

Xiaomi Announces Major Loss in the Last Quarter

Xiaomi Announces 67% Loss Compared to Previous Quarter

Xiaomi president Wang Xiang used the following statements in a meeting with analysts after reporting quarterly earnings:

“This quarter, our industry faced many challenges, including rising global inflation, currency fluctuations and the complex political environment. These challenges significantly impacted overall market demand and our financial results for the period.”

Xiaomi’s smartphone sales in China, which account for more than half of the company’s total revenue, fell 29% . Smartphone sales are around 70.17 billion yuan ($10.31 billion), down 20% year-on-year , marking a sharper decline from the previous quarter. Net income fell 67% to 2.08 billion yuan, beating analysts’ estimates .

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