Xiaomi China Initiates Major Workforce Restructuring, Preparing to Absorb About ¥27.26 Million in Related Costs

On December 9, 2025, Jiemian News reported that Xiaomi’s China division has officially launched a large-scale restructuring of both its workforce and retail channels. The sweeping adjustments span key business segments including smartphones, smart vehicles, and major home appliances. The initiative is designed to ease mounting performance pressure and accelerate Xiaomi’s strategic shift from rapid expansion to a stronger focus on quality-driven growth.

On the personnel front, Xiaomi Group Senior Vice President and President of China Region Wang Xiaoyan has taken on the additional role of General Manager of Sales & Operations Division One, signaling deeper hands-on management of core operations. At the same time, Guo Jinbao, formerly General Manager of the Jiangsu branch, has been promoted to lead Sales & Operations Division Two while retaining his original post. Former Automotive Sales & Delivery Services General Manager Zhang Jian has been reassigned as Head of New Retail, while Xia Zhiguo now leads the automotive sales and delivery services division. He Junling has been appointed General Manager of the Gansu–Qinghai–Ningxia regional branch, and all newly appointed executives will report directly to Wang Xiaoyan. Meanwhile, prior division heads Sun Hao and Liu Yaoping have been reassigned from their original positions.

On the channel optimization side, Xiaomi has clearly defined “quality improvement” as its core development priority for 2026. The company plans to shut down a large number of inefficient and loss-making legacy stores that opened before January 1, 2025, with the total number of affected outlets nationwide potentially exceeding 1,000 locations. For stores that show strong sales but heavy losses, as well as newly established outlets in 2025 that struggle to break even, Xiaomi will adopt a flexible, case-by-case approach. As part of this overhaul, Xiaomi is prepared to absorb approximately RMB 27.26 million in one-time losses, while helping its dealers reduce annual losses by more than RMB 72.46 million. At the same time, the staffing structure of automotive stores will be streamlined from the previous “1+2+11” model to a leaner “1+1+5” structure, and the pace of new retail expansion will be deliberately slowed.

According to sources, the catalyst for this major restructuring lies in intensifying performance pressure within Xiaomi’s China operations. A challenging external market environment has slowed order growth across smartphones, smart vehicles, and large home appliances, while inventory pressure has emerged in certain categories. As of press time, Xiaomi has not yet issued an official public response regarding these adjustments.