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Business News/ News / India/  Xiaomi to bring down India headcount to below 1,000: Report
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Xiaomi to bring down India headcount to below 1,000: Report

Xiaomi is going through a slump in market share, and intense scrutiny by government agencies.

Raghu Reddy, head of online sales, Xiaomi India, says India is the biggest market for the company outside of China. Photo: BloombergPremium
Raghu Reddy, head of online sales, Xiaomi India, says India is the biggest market for the company outside of China. Photo: Bloomberg

Xiaomi India is looking to bring down its headcount to below 1,000 as it goes through an organisational rejig, according to a report in the Economic Times.

Xiaomi is going through a slump in market share, and intense scrutiny by government agencies. According to the report, the company laid off at least 30 employees over the last week and will layoff more people. Xiaomi India had employed 1,400-1,500 people at the start of this year.

Reportedly, Xiaomi India's move to downsize its workforce appears to be a strategic response to the shifting dynamics of the market and a step towards enhancing operational efficiency. In light of a decline in market share, the company is actively reviewing strategies to streamline its organizational structure and optimize resource allocation.

"As with any company, we take headcount decisions based on the market's state and business projections," the report quotes a source as saying.

The Enforcement Directorate issued a show-cause notice to Xiaomi Technology India, CFO Sameer Rao, its former MD Manu Jain, and 3 banks for FEMA violation of 5,551 crore, news agency PTI said quoting officials on Friday. The officials said that the notice has been issued with respect to illegal remittances made by the company to the tune of 5551.27 crores.

The authority, while confirming the seizure, held that ED is right in holding that foreign exchange equivalent to INR 5551.27 crore has been transferred out of India by Xiaomi India in an unauthorised manner and is held outside India on behalf of the group entity in contravention of Section 4 of the Foreign Exchange Management Act, 1999 and the same is liable to be seized in terms of provisions of Section 37A of the FEMA, the statement further said.

"The competent authority, appointed under Section 37A of the FEMA, has confirmed the said seizure order.

ED seized funds amounting to 5,551.27 crore belonging to Xiaomi Technology India Private Limited, which were held in its bank accounts. This action was carried out under the Foreign Exchange Management Act (FEMA) due to the unauthorized transfer of this sum disguised as royalty payments to overseas entities.

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Published: 29 Jun 2023, 08:53 PM IST
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