The pattern of layoffs in the world’s large companies continues: Xiaomi cut 10% of its workforce in China, arguing the rebound of COVID-19 in the country.
All over the planet, giants of the automotive industry and technology, such as Tesla, Ford, Twitter, Meta and Microsoft, among others, they have appealed the dismissals by the end of 2022.
They are still the blows of the pandemic crisis, plus world inflation and the war in Ukraine.
Xiaomi announced this week that its “staff optimization and organizational streamlining practice” (a euphemism for layoffs) would affect “less than 10% of the total workforce.” Initially there was talk of 15%, always focusing on the area of Internet services and smartphones.
Those laid off were compensated in accordance with local regulations.
COVID-19 outbreaks affect Xiaomi in China
In China, in addition to Xiaomi, companies like Tencent and Alibaba also cut their workforces, driven by due to the new outbreaks of COVID-19 in the country.
According to the South China Morning Post, quoted by Reuters, Xiaomi had 35,314 employees on September 30, with more than 32,000 in mainland China. Thousands of workers are affected by the workforce cuts.
The smartphone and other electronics company announced a 9.7% drop in third-quarter revenue in November, due to COVID-19 restrictions in China and declining consumer demand.
Layoffs in other large companies in the world, such as Twitter, Tesla and Ford, among others
In the rest of the world, companies like Tesla and Twitter, of Elon Musk; Meta, Ford, Snapchat and Microsoft they also made layoffs at the end of 2022.
Meta eliminated more than 11,000 workers from its workforce; Twitter, about 3,700; Ford, about 3,000. While Snapchat, more than 1,200 and Microsoft, about a thousand.
The crisis does not seem to be ending in the short term, and 2023 looks set to be a difficult year.