Xiaomi crisis: Lei Jun writes to employees, other personnel cuts

After fired 10% of its workforce worldwide, three senior executives have resigned from the ranks of Xiaomi, primarily the former president Wang Xiang, in early retirement and promptly replaced by Lu Weibing (former head of Redmi). But Hong Feng and Wang Chuan also left, thus leaving Lei Jun as the only co-founder of Xiaomi still present, although he too he walked away from the more “historical” part of the company.

The sales results are not convincing: other personnel cuts in Xiaomi, and Lei Jun writes to the employees

And it is Lei Jun himself who wrote a letter to the employees, leaked to the Asian media, in which he talks about these changes as a step that took place quietly but was necessary to make the company more efficient, to counter the economic crisis that has been gripping the company for months . The letter underlines the “Hard times” that Xiaomi has been experiencing for several months now; in the last Q4 2022, the company recorded a decrease of -67,3% of profitsthus marking the fourth consecutive quarter down and with worse results than expected.

For the Chinese market, 2022 was the worst year of the last decade (-14%) as well as the fifth consecutive year in decline, with OPPO (-27%), vivo (-23%) and Xiaomi (-19%) who have closed the year in the negative, also expanding to the global market and that Indian; and according to analysts, 2023 is likely to go even worse, also affecting other sectors such as that of MIUI, The SmartWatch, smartband and headphones.