OnePlus has reportedly laid off 80 percent of the staff in Europe. According to company sources, the move is part of normal strategic restructuring for the company. The company laid off its employees in the UK, Germany, and France. The layoffs come in the midst of the recent launch of the flagship OnePlus 8 and OnePlus 8 Pro devices. The layoffs are substantial and only skeletal teams are working in Europe. The company conducted the same exercise in Spain and Italy in 2019.
OnePlus has confirmed the layoffs by stating that these are part of the normal restructuring process for the company. The company also revealed that Europe is an important destination for the company and they have initiated the required process for hiring staff despite layoffs. The management added that the restructuring was planned in advance and is not related to the current economic scenario.
The COVID-19 outbreak has caused havoc not only among the people but also with the companies and other establishments. With lockdown in place, the shops and malls across various countries are closed. The economic situation has worsened because of the low tax collections. Even e-commerce companies stopped their operations due to logistical requirements. The eruption of COVID-19 could be the reason for the mass OnePlus layoffs. Even though the company denies this fact, we believe that the company is struggling with sales due to COVID-19.
OnePlus only sells high-end smartphones and the price is above INR 30000, which is expensive. People will now double-check whether they need to invest for a handset with expensive pricing. This is because a new version will release in 2021 and the current model will become outdated. The resale value is less for OnePlus smartphones and you will end up with an outdated product within 10 months. Moreover, the need for a huge investment of over INR 35000 for a smartphone is something the people should think about.
The lockdown in India will end on May 3 but it will be extended in states where there are high number of positive COVID-19 cases. It remains to be seen as to whether OnePlus will invoke any cost-cutting measures after the lockdown period. The Government has advised companies not to perform any kind of layoff or cut salaries during the lockdown cycle. We expect the company will layoff employees after 3 months depending upon the overall financial situation.
