At January 30, The Lei Jun, Founder, President and CEO of the Xiaomi group announced the creation of two new company management bodies, the Operations Management Committee and the Human Resources Committee
The CEO Lei Jun he will personally chair both committees and supervise their activities.
Characterizing the new management committee "a far-reaching change in the history of corporate governance" and "the first major event at the beginning of the year", The Lei Jun he explained the need, importance and functions of this new committee in a letter he published.
Η Operations Management Committee will consist of employees and experts from various departments and will focus on various activities of the company, such as for example the marketing, business strategy, coordination, planning, budgeting, execution and day-to-day operations.
The committee will consist of 12 members, including Lei Jun together with the President of the Xiaomi Group, Lu Weibing, who was previously its head redmi, but also him Zeng Xuezhong the current one SVP and President of the Smartphone division, who previously headed its smartphone division ZTE.
Η Human Resources Committee will have 7 people including Lei Jun, Lu Wiebing and Liu De, co-founder and vice president of Xiaomi, as well as other heads of Human Resources and General Affairs departments.
It seems that these new committees will play a vital role in shaping the future of the Xiaomi group, as they include leaders from the company's three major divisions: of Smartphones, IoT and Consumer goods as well as Internet services.
Internal restructuring and organizational changes are not new for Xiaomi. Recently, the company has reassigned many of its officers to different internal organizations it has established to address the different needs.
The company performed more than 35 internal structural changes which included some important developments: such as the resignation of the company's founder Lei Jun from many of Xiaomi's subsidiary companies. In September 2022, Mr Lei Jun also resigned from his position as President ofXiaomi Electronic Software Technology Ltd. and left the position of director of some of the subsidiary companies that Xiaomi has
Why is Xiaomi changing its management structure?
Xiaomi is rapidly changing its management structure to combat the pressure it is under after losing top positions in both China and India markets. The big drop in sales along with the decline in global demand for smartphones has the company worried about the future.
Last year, for the first time in a decade, China's smartphone sales hit a record low. According to an IDC report, in 2022 smartphone shipments in China were about 286 million units, representing a class drop of 13% compared to the previous year.
In India, which is the second largest smartphone market in the world, Xiaomi held the top position for 5 consecutive years. However, the fourth quarter of 2022, as Xiaomi sales down 6% year on year, resulting in Samsung dethroning Xiaomi to become the new market leader in India.
The resignation of the former head of Xiaomi India, Manu Kumar Jain, along with the CEO Raghu Reddy and the Head of Marketing Sumit Sunal, show a significant change in its internal management Xiaomi India.
Ο Rajeev Nair, senior analyst at Tech Insights, said that while these departures of Xiaomi's top executives from India do not directly affect revenue and sales, the multiple resignations have certainly taken a toll on the company, and this is evident in Xiaomi's declining performance in the Indian market.
Do not forget to follow it Xiaomi-miui.gr on Google News to be informed immediately about all our new articles! You can also if you use RSS reader, add our page to your list by simply following this link >> https://news.xiaomi-miui.gr/feed/gn
Follow us on Telegram so that you are the first to learn our every news!
