Xiaomi India: Xiaomi cuts jobs in India, to restructure operations: Report – Times of India
Xiaomi India is reportedly cutting jobs. According to a report in Economic Times, the company plans to bring its workforce number under 1,000 in India. The report claims that the layoffs are a part of an internal restructuring that Xiaomi India is going through.
The Chinese smartphone maker’s employee strength at the beginning of the year 2023 stood at 1,400 to 1,500. This means that minimum 400-500 people will be laid off for the headcount to be below 1000. As per the report, some 30 people have already been asked to go in the past week. More are likely to go in the coming days. Xiaomi told the publication that like any other company, their headcount decisions are influenced by market conditions and business projections. They further mentioned that they continue to hire employees as and when required.
Facing ED pressure
Xiaomi has been facing trouble in the India market. The year 2022 has been particularly rough for the company with market share falling and intense scrutiny by the government agencies. Earlier this month, Enforcement Directorate (ED) issued showcause notices to top officials of Xiaomi, including CFO Sameer Rao, former MD Manu Jain and three banks for alleged foreign exchange violation of Rs 5,551.27 crore.
“The Adjudicating Authority has issued SCN to Xiaomi Technology India Private Limited, its officials and 3 banks under FEMA on the basis of a complaint filed by the ED with respect to illegal remittances made by the company to the tune of Rs 5,551.27 crore,” said ED in a statement.
The agency had seized Rs 5,551.27 crore worth of funds of Xiaomi Technology India Private Limited lying in its bank accounts under the FEMA for “unauthorised” remittance of this amount in the guise of royalty abroad.
The Chinese smartphone maker’s employee strength at the beginning of the year 2023 stood at 1,400 to 1,500. This means that minimum 400-500 people will be laid off for the headcount to be below 1000. As per the report, some 30 people have already been asked to go in the past week. More are likely to go in the coming days. Xiaomi told the publication that like any other company, their headcount decisions are influenced by market conditions and business projections. They further mentioned that they continue to hire employees as and when required.
Facing ED pressure
Xiaomi has been facing trouble in the India market. The year 2022 has been particularly rough for the company with market share falling and intense scrutiny by the government agencies. Earlier this month, Enforcement Directorate (ED) issued showcause notices to top officials of Xiaomi, including CFO Sameer Rao, former MD Manu Jain and three banks for alleged foreign exchange violation of Rs 5,551.27 crore.
“The Adjudicating Authority has issued SCN to Xiaomi Technology India Private Limited, its officials and 3 banks under FEMA on the basis of a complaint filed by the ED with respect to illegal remittances made by the company to the tune of Rs 5,551.27 crore,” said ED in a statement.
The agency had seized Rs 5,551.27 crore worth of funds of Xiaomi Technology India Private Limited lying in its bank accounts under the FEMA for “unauthorised” remittance of this amount in the guise of royalty abroad.
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