Xiaomi India President refutes layoff rumours, says not firing any employee in 2023

By Ankita GargXiaomi India’s President, Muralikrishnan B, has firmly stated that the company will not be laying off employees in India this year, contrary to recent reports suggesting a significant reorganization. Addressing concerns about declining market share and operational efficiency, he emphasized the company’s focus on profitability.

Earlier reports had indicated that Xiaomi India was planning to reduce its workforce to fewer than 1,000 employees, leading to speculations of layoffs. The company was said to have already let go of around 30 employees, with more job cuts planned for the future, according to accounts from some former Xiaomi employees. However, Muralikrishnan vehemently denied these claims, asserting that no pink slips were being handed out.

He clarified to Economic Times that organizational restructuring is occasionally necessary to align with the company’s strategic goals, ensuring efficiency and clarity of roles. However, he stressed that any rumors about firing people were false, emphasizing the importance of maintaining the right structure to deliver the company’s strategy effectively.

“You will, in the interest of efficiency in the interest of clarity of roles, restructure your organisation whenever required to suit the needs of the strategy. And we’ve done that, and we continue doing that. To all speculations on us firing people, that is something that I will flatly deny,” Muralikrishnan said.

“There is a strategyâ€æ There is a structure that needs to follow that strategy. And as long as the structure is optimised and efficient to deliver that strategy, that is the right structure that we will adopt,” he added.

Muralikrishnan also discussed Xiaomi’s expansion in the offline retail sector. The company aims to increase the contribution of offline sales to 60 percent of its overall sales. He expressed optimism about the growth potential in the offline space and highlighted efforts to boost retail margins and maintain price consistency to build confidence in their sales channels.

Interestingly, Xiaomi is not the only company taking a cautious approach to layoffs. Apple’s CEO, Tim Cook, revealed a similar stance, stating that mass layoffs are considered a “last resort” for the tech giant. While Apple is taking measures to reduce costs, it is primarily slowing down its pace of hiring instead of resorting to widespread job cuts.

Cook emphasized that Apple is being extremely prudent in its hiring practices and actively seeking ways to cut unnecessary spending. The company continues to hire, albeit at a reduced rate, while scrutinizing its expenditures to identify areas where savings can be made.