Last week, the Chinese smartphone brand sacked around 30 workers out of the nearly 1,400 to 1,500 staff it employed in the beginning of 2023. The company is likely to lay off more people in the coming months, the report added.

Decisions regarding the rejig and changes to internal structures were in the hands of the Chinese parent, the report said. The move aims to improve operational efficiency, streamline its organisational structure and optimise resource allocation. The headcount has steadily decreased since the beginning of the year amid a review of the company strategies.

Citing a senior Xiaomi executive, the report added that the top leadership had designed a performance improvement plan (PIP) based on which non-performing employees could be fired.

“As with any company, we take headcount decisions based on the market’s state and business projections,” the report quoted Xiaomi in a statement, adding that the firm continues to hire talent ‘when and where needed’.

Xiaomi India’s shipments dropped to 5 million in the first quarter of 2023 from 7-8 million a year ago. After being the top smartphone brand in India for 20 straight quarters, it fell to the third rank behind Samsung and Vivo with a market share of 16%.

Earlier in June, the Enforcement Directorate issued showcause notices to Xiaomi India, its officials and three banks under the Foreign Exchange Management Act for alleged foreign exchange violation of more than ₹5,551 crore. The notices were issued to Manu Kumar Jain, former MD, and Sameer B Rao, director and chief financial officer.