Home / Business / Chinese Smartphone giant Meizu backed by Alibaba (NYSE:BABA) is reducing 5% of its workforce

Chinese Smartphone giant Meizu backed by Alibaba (NYSE:BABA) is reducing 5% of its workforce

Meizu Technology Corp is a Chinese Smartphone giant backed by Alibaba Group Ltd. (NYSE:BABA). Meizu is curtailing around 5 percent of its approximately 4000 staff in order to buttress its performance as the industry of Smartphone keeps growing and competitive with every single passing year. Meizu has taken an approach to cut down as many as 200 employees from their huge work force which will eventually trim down around 10 percent of their workforce by mid February.

Meizu spokesperson Li Nan stated on behalf of the company it has plan to employ a 20-70-20 vitality model penned by former General Electric Co. Chairman Jack .This model is designed to trim down the bottom 10 percent of performers from a company in order to corroborate better performance. Last year was a difficult year for Chinese Smartphone vendors and with other competition Meizu also stalled to the “Low single digits. Oppo, Meizu , OnePlus also suffered this rapid decline in market last year. Alibaba bought a segment of $ 590 million stake in lower brand crowd to promote their “Yunos” operating system.

Xiaomi Corp, another giant in Chinese Smartphone clan missed out its target of selling 80 million Smartphone in 2015 which is alarming according to many trade analyst. According to a business Analyst from Taipei, although Alibaba is backing Meizu, still Meizu will face challenge in hardware aptness section.

Meizu is planning to widen its retailing by expanding producing up to 25 percent. Compare to their regular market, this is about adding 25 millions of new phone in the already competitive market. Meizu is suffering intensified competition in the low end Smartphone market in which zone this company mostly competes. Meizu started making Smartphone back in 2007.Although Meizu is not a top garner in the Smartphone market but it was able to make a corner for itself with its release of MX4 and MX pro devices in the 2015.

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