Chinese consumer electronics & mobile communications firm, Oppo has revealed plans to lay off roughly 20% of its staff in software and hardware teams after merging operations with premium smartphone brand, OnePlus.
The news comes as the consumer electronics sector grapples with chip shortages and Covid-driven economic disruptions.
As per credible sources, job layoffs will affect crucial units engaged in modifying Oppo's in-house built ColorOS and Android skin, along with the Internet of Things (IoT) business that produces anything from smartwatches to earphones.
Oppo had united with OnePlus in June 2021 for better integration between the two companies and lower overhead. However, as a result of this policy, specific roles have now become unneeded. As for now, the R&D team at Oppo for overseas sales and phones haven't been affected by the laying off.
It is vital to note that Oppo is gaining ground in the smartphone industry. According to research published recently, Oppo's smartphone shipments increased to 37% in Q2 2021, and it marked 4th position. The smartphone maker ranks behind tough competitors such as Xiaomi and Apple.
Oppo has also made significant investments in India, Southeast Asia, and Europe to grow its market share. However, these initiatives are yet to thrive. It's also dealing with a retail slowdown in China, where Covid's comeback has shut down sections of the nation.
Meanwhile, OnePlus has made further breakthroughs into the US market, but it cannot compete with Apple and Samsung Electronics in the luxury market.
In 2020, its local rival Huawei Technologies lost most of its mobile operations due to US sanctions.
It's unclear how this will influence ColorOS's development inside the firm. Surprisingly, Oppo revealed the first details of its ColorOS interface based on Android 12 recently, promising that additional information would be available in October.