OPPO has reportedly cut about 20% of the company's staff in key software as well as device teams. This is seen as a move shortly following the recent OPPO and OnePlus merger of teams amidst the ongoing COVIDp-19 pandemic.
OnePlus OPPO Team Merges
According to the story by XDA-Developers, the company has had to cut about 20% of its staff in the key software and device teams. The company has just recently merged its hardware R&D teams, as well as software teams with its sister smartphone brand OnePlus.
This is reportedly a move that comes amidst ongoing global chip shortages as well as the COVID-19 induced economic setbacks even affecting the company. Aside from the economic reasons, Bloomberg, which reported while citing unnamed resources, reports that there are actually also some other reasons that are behind the recent consolidation between both of the companies.
OPPO's Rapid Expansion
OPPO, apparently, expanded way too fast when it still kept hiring employees in a bold attempt to take some of the market shares from the giant Apple. In an attempt to scale back, a number of the positions that were cut were from the supposed ColorOS team along with the IoT division that reportedly focuses on wearables, just like smartwatches as well as earbuds.
Apparently, the merger along with OnePlus actually created some reportedly redundant positions. This then led to OPPO making certain significant cutbacks in those particular teams. Aside from OPPO, Xiaomi's live event recently introduced the Xiaomi 11 Pro with a 17-minute charge HyperCharge.
OPPO vs Apple and Xiaomi
As of the moment, the company's current R&D team for smartphones, as well as the overseas sales position, have not yet been impacted by the supposed job cuts. This is according to sources that were speaking to Bloomberg. OPPO then reportedly declined to comment officially towards Bloomberg.
OPPO has reportedly been heavily investing in markets just like India, Europe, and Southeast Asia. The company, however, failed to challenge both Apple and the Chinese smartphone and tech giant Xiaomi as well.
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COVID-19 Resurgence
Aside from not being able to challenge the two massive companies, the slowing sales in China is due to the COVID-19's resurgence. This reportedly meant that the company was then forced to make a number of changes.
The research director at Counterpoint Research, Tarun Pathak, gave a statement to Bloomberg. It was noted that the company is spread thinly across a number of fronts, directly attacking the premium market. The premium market is about making regional bets and is now even moving into wearables.
Tarun Pathak noted that the cuts are actually probably as much about certain cost savings as it is now a change in tack around strategy itself. As of the moment, the specifics regarding the team cuts are still unknown, aside from the 20% cut. Xiaomi, as of the moment, is boasting of 1 billion color displays which is quite hard to compete with.
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Written by Urian B.
