Mere days afterward Xiaomi’s latest earnings report, which shows signs of slowing growth, the Chinese companionship has undergone a major leadership reshuffle. Xiaomi co-founder Lei Jun has stepped downwards from his business office equally the company’s Chinese president.
Xiaomi notified its employees of major leadership changes via an internal missive of the alphabet circulated before final week, equally per a report inward Technode. Lei Jun’s responsibilities volition hold upward shouldered yesteryear Lu Weibing, the build managing director for Xiaomi’s budget-focused spin-off build Redmi. He volition directly hold upward Xiaomi’s mainland People’s Republic of China President to oversee overall operations as well as reignite growth inward the coming months.
Lei Jun has stepped downwards equally the company’s mainland People’s Republic of China President precisely volition proceed to serve equally chairman as well as CEO.
In the internal letter, Lin Jun states “Next twelvemonth volition hold upward an offensive twelvemonth for Xiaomi’s 5G business, as well as it volition also hold upward a fundamental twelvemonth for Xiaomi to promote mobile call upward + AIoT. We need to a greater extent than powerful grouping management support. It is [now] necessary to proceed the organizational invention vitality brought yesteryear the cadre rotation mechanism”
In addition, onetime president Lin Bin has directly been promoted to the seat of Xiaomi’s vice president as well as CFO Zhou Capital is directly the caput of international business. Xiaomi co-founder Li Wanqiang, who led Xiaomi’s marketing as well as build strategy, resigned from the companionship as well as Senior Vice President Qi Yan likewise retired this year, precisely both the officials are said to retain advisory roles, equally per the internal letter.
Did Xiaomi Need a Leadership Change?
The leadership modify could primarily hold upward because of the company’s back-to-back disappointing quarterly results. If you lot are non aware, Xiaomi’s marketplace portion inward mainland People’s Republic of China has shrunk to 9% from 12% over the yesteryear 6 months. The companionship did witness a 5.5% year-on-year (YoY) growth
The companionship is punching out novel phones, which are all smashing value-for-money offerings, nearly every month. But, its homegrown competitor Huawei has ramped upward marketing over the yesteryear few months to counter the ill-effects of its international sales. The companionship has directly swelled to capture a 42% marketplace portion inward mainland People’s Republic of China afterward its U.S merchandise ban.
Xiaomi is seeing a rigid growth trajectory inward Bharat as well as had ventured into Europe before final twelvemonth precisely is directly stepping human foot into the Japanese smartphone marketplace on Dec ix side yesteryear side week. It volition hold upward interesting to come across the reply towards the brand, who is directly also scheduled to launch an affordable 5G phone, the Redmi K30, side yesteryear side week.