Shulou(Shulou.com)11/24 Report--

On the afternoon of July 8, Xiaomi, which has experienced a decline in revenue for several consecutive quarters, continues to vigorously promote cost reduction and efficiency improvement in order to improve its performance. Xiaomi recently announced the establishment of a special group for reducing costs and increasing efficiency of the group, with Lin Shiwei, CFO of the group, as the group leader.

It is reported that the special group for reducing costs and increasing efficiency will report to the group management committee, with Lin Shiwei, CFO of the group, as the group leader, Pan Jiutang, Liu Wei, and Zhang Jianhui, special assistants of the group CEO, as the team members, and Sun Qian, vice president of the group finance department, as the secretary-general to carry out the daily work.

The operation and management committee of Xiaomi Group was established in January this year. Lei Jun, CEO of Xiaomi Group, personally serves as the director of the Economic Management Committee, and its members include a number of senior executives and business department heads of Xiaomi Group, which are mainly responsible for the overall management of business strategy, planning, budget, implementation and daily business management.

Since 2022, the mobile phone market has been in the doldrums, and mobile phone manufacturers, including Xiaomi, are facing tremendous performance pressure. Since the first quarter of 2022, Xiaomi has experienced five consecutive quarters of revenue decline and four consecutive quarters of decline in net profit.

At the beginning of this year, Xiaomi announced that it would launch a new business strategy of "paying equal attention to scale and profit" to optimize the internal management structure, improve operational efficiency and optimize the allocation of resources. People familiar with the matter told Sina Technology that Lei Jun had said bluntly at an internal executive meeting: "this is a time of life and death, and we need to find a point to reduce costs and increase efficiency." Xiaomi also solicited cases of reducing costs and increasing efficiency internally, which were promoted to the whole company.

In the first quarter of this year, Xiaomi's total revenue was 59.5 billion yuan, down 18.9% from a year earlier, while adjusted net profit reached 3.2 billion yuan, up 13.1% from a year earlier. Although revenue is still declining, net profit has finally returned to growth, reducing costs and increasing efficiency are also beginning to bear fruit.

Recently, Lei Jun also put forward suggestions for invested enterprises at an internal meeting of Shunwei Capital: "keep an eye on cash, reduce costs and increase efficiency" as a way to get through the current economic cycle.

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