Xiaomi India is considering downsizing its workforce to below 1,000 employees as part of an organisational restructuring plan. This move comes in response to a decline in market share and heightened scrutiny from government agencies.
As per media reports, Xiaomi India, which had a workforce of around 1,400-1,500 employees in early 2023, has recently undertaken a layoff of approximately 30 employees. There is a possibility of further layoffs in the future.
In a bid to improve operational efficiency and adapt to changing market dynamics, Xiaomi India has implemented a reduction in its workforce. The company is actively reassessing its organizational structure and resource allocation strategies in response to a decrease in market share.
In a recent development, Xiaomi Technology India Private Limited, along with its Chief Financial Officer Sameer Rao, former Managing Director Manu Jain, and three banks, have received a show-cause notice from the Enforcement Directorate (ED).
The notice, issued on Friday, May 9, pertains to alleged violations of the Foreign Exchange Management Act (FEMA), involving illegal remittances totalling an astonishing amount of Rs 5,551.27 crore.
News agency PTI reported that officials have revealed that the Enforcement Directorate (ED) took action against Xiaomi India and its key executives based on an investigation into the company’s financial activities.