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Xiaomi Cuts Jobs in Core Phone and Auto Departments
TMTPOST — Electronics and electric vehicle giant Xiaomi Corporation (1810.HK) has rolled out a series of phased workforce reductions since March, targeting structural personnel adjustments across its smartphone, automotive, internet services, and international business divisions. According to internal employee disclosures published by Caixin, the staff reductions span critical operational roles including research and development, quality testing, product management, and corporate marketing. While Xiaomi officially downplayed the scale of the cuts, characterizing them as routine optimizing adjustments rather than a company-wide mass layoff, internal sources report that departmental exit consultations began in April, with affected personnel heavily concentrated in June departures. Severance packages are reportedly being structured under standard N+1 formulas, with certain departments in Beijing receiving mandates to slash total labor cost overhead by approximately 20.00%. Hardware design firms are leveraging niche operating adjustments to bypass broader revenue slowdowns affecting mature consumer segments. Rebalancing headcount expenses away from legacy smartphone and internet units allows the tech giant to protect its operational cash flow amid fierce domestic EV price competition. This targeted restructuring offers a more predictable path to cash-flow sustainability as primary market segments face protracted local regulatory bottlenecks.
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