08 October 2021
Oppo is reportedly laying off 20% of its staff after it merged with another Chinese smartphone giant OnePlus. The reductions are spread across both hardware and software teams. As per Bloomberg report citing unnamed sources, the merger is one of the reasons responsible for the decision to downsize.
The software team is facing the heat simply because of the OnePlus merger. There are said to be redundant hirings which is essentially an unnecessary expense on the company's balance sheet. The decision to downsize the staff will help cut down on costs as the company is already struggling with the pandemic-induced economic slowdown in China.
As for hardware reductions, it does not affect the smartphone division. These layoffs have occurred within the Internet of Things (IoT) division responsible for working on products like smartwatches and earbuds. The move is not surprising as we have seen Oppo has not been able to make the same impact in the wearables market as it has done with smartphones.
The report further adds that Oppo also ended up going on a hiring spree as part of its ambition to take on Apple. It seems to have resulted in hiring people that the company did not need. It is important that even though 20% is said to be the current figure, it is not final yet. There is a chance Oppo may end up laying off even more employees.