(Yicai Global) June 30 -- Following reports of job cuts, Xiaomi India told Yicai Global that it will adjust its staffing numbers according to market conditions and the business outlook. It did not say how many staff would be laid off.

Indian newspaper The Economic Times reported on June 28 that Xiaomi India will slash its headcount to less than 1,000 people as part of an organizational rejig amid tough competition in the local market and disputes with government agencies.

Xiaomi India employed around 1,400 people at the start of 2023. It laid off about 30 in the past week or so, the report said, and more are likely to be let go in the coming months.

“In addition to optimizing according to what is needed, we continue to recruit for positions when and where they are needed,” Xiaomi India also told Yicai Global.

“With the goal of building a sustainable team, we ensure that our biannual performance management process rewards the best performers, while also ensuring that the worst performers are given the opportunity to improve within a reasonable amount of time and those who fail to meet the requirements are ‘optimized,’” it said.

In May 2022, India’s Directorate of Enforcement seized INR55.5 billion (USD725 million) from Xiaomi for making “illegal remittances.” The agency later announced that the funds would be officially confiscated. Xiaomi denied the accusation and said it had complied fully with Indian laws.

According to IDC data, Xiaomi led in the Indian market for the whole of last year with a share of 21 percent, followed by Samsung with 18.1 percent and Vivo with 15.9 percent. But in the fourth quarter, even though its market share rose to 24.8 percent, it had slipped behind Samsung. Xiaomi’s shipments in India were also down 25 percent from the year before.

Editor: Tom Litting