By WU Yangyu

Xiaomi has begun a new round of layoffs, multiple sources at the smartphone manufacturer confirmed to Jiemian News.

According to a staff member, almost all departments were involved, with some teams laying off up to 75 percent of their personnel.

Xiaomi did not reply to a query sent by Jiemian News.

The staff member who spoke with Jiemian News said they were content with the compensation, which, they claimed, was better than the annual bonus. Another employee who worked for Xiaomi for three years said his severance pay was more than the previous seven months' salary combined.

Rumors are circulating among employees that 15 percent?of them will be laid off. According to Xiaomi's third-quarter report, the company had 35,314 employees at the end of September. Xiaomi's profits in the first three quarters were 2.86 billion yuan (US$410 million), 2.08 billion yuan, and 2.12 billion yuan, respectively, less than half of the same period last year.

The company has invested 1.87 billion yuan in its electric vehicle venture, but the sharp decline in its phone business is more concerning. Xiaomi's overseas markets have suffered greatly as a result of high inflation and geopolitical tensions. Domestically, its newly released high-end model S12 received positive reviews, but sales volume did not increase. Xiaomi remains in fifth place on the list of domestic phone makers.

WANG?Xiang, president of Xiaomi, said on the Q3 conference call that the company has been reducing costs and increasing effectiveness this year and will continue doing so for a better 2023.