Mere days after Xiaomi’s newest earnings report, which reveals indicators of slowing development, the Chinese language firm has undergone a serious management reshuffle. Xiaomi co-founder Lei Jun has stepped down from his position as the corporate’s Chinese language president.
Xiaomi notified its staff of main management adjustments by way of an inside letter circulated earlier final week, as per a report in Technode. Lei Jun’s tasks might be shouldered by Lu Weibing, the model supervisor for Xiaomi’s budget-focused spin-off model Redmi. He’ll now be Xiaomi’s China President to supervise total operations and reignite development within the coming months.
Lei Jun has stepped down as the corporate’s China President however will proceed to function chairman and CEO.
Within the inside letter, Lin Jun states “Subsequent yr might be an offensive yr for Xiaomi’s 5G enterprise, and it’ll even be a key yr for Xiaomi to advertise cell phone + AIoT. We want extra highly effective group administration assist. It’s [now] essential to proceed the organizational innovation vitality introduced by the cadre rotation mechanism”
As well as, former president Lin Bin has now been promoted to the place of Xiaomi’s vice chairman and CFO Zhou Capital is now the pinnacle of worldwide enterprise. Xiaomi co-founder Li Wanqiang, who led Xiaomi’s advertising and model technique, resigned from the corporate and Senior Vice President Qi Yan too retired this yr, however each the officers are stated to retain advisory roles, as per the inner letter.
Did Xiaomi Want a Management Change?
The management change may primarily be due to the corporate’s back-to-back disappointing quarterly outcomes. In case you are not conscious, Xiaomi’s market share in China has shrunk to 9% from 12% over the previous six months. The corporate did witness a 5.5% year-on-year (YoY) development
The corporate is punching out new telephones, that are all nice value-for-money choices, nearly each month. However, its homegrown rival Huawei has ramped up advertising over the previous few months to counter the ill-effects of its worldwide gross sales. The corporate has now swelled to seize a 42% market share in China after its U.S commerce ban.
Xiaomi is seeing a robust development trajectory in India and had ventured into Europe earlier final yr however is now stepping foot into the Japanese smartphone market on December 9 subsequent week. Will probably be attention-grabbing to see the response in the direction of the model, who’s now additionally scheduled to launch an inexpensive 5G cellphone, the Redmi Ok30, subsequent week.