Nothing Reportedly Scales Back Global Operations, Plans Significant Layoffs
The smartphone brand Nothing, launched by OnePlus co-founder Carl Pei in 2020, is reportedly planning a major retreat from multiple international markets. According to an exclusive report, the company is preparing to exit at least 12 countries, including Japan and several markets in the Middle East and Europe, amid a sharp rise in memory component costs that is reshaping the industry.
Workforce Reductions and R&D Impact
The restructuring is expected to involve substantial layoffs, with the global workforce potentially shrinking by approximately 40%. The company’s research and development division may face a disproportionately large reduction. Reports indicate that roughly half of the R&D staff based in China could be let go, alongside an estimated 30 to 40 percent of the London-based team. This pullback comes despite an initial period of growth that saw Nothing expand from earbuds into a full smartphone lineup that was generally well-regarded.
Sales Performance and the India Exception
Disappointing hardware sales outside of India are cited as a key factor behind the decision. The Nothing Phone (4b) has reportedly shipped only around 20,000 units globally since its release. Combined shipments for the Phone (4a) and Phone (4a) Pro are said to total roughly 150,000 units. In stark contrast, the company’s focused strategy in India has yielded strong results. Counterpoint Research recently named Nothing the fastest-growing smartphone brand in India during the second quarter of 2026, with shipments rising 105% year-over-year—a figure that excludes the now-independent CMF sub-brand.
CMF Faces Separate Headwinds
The CMF brand, spun off into a separate entity last year, is navigating its own difficulties. Co-founder Akis Evangelidis confirmed that no new CMF smartphone is planned for 2026, pointing to soaring memory prices as the reason a competitively priced successor is not economically feasible. This challenge is compounded by a reported 45% year-over-year contraction in India’s sub-Rs 20,000 smartphone segment during Q2 2026. At least one device originally intended for CMF has reportedly been reassigned to Nothing’s main lineup, where a higher price point can be more readily absorbed. Adding to the uncertainty, CMF India head Himanshu Tandon has stepped down, leaving the value-focused brand without a key executive in a critical market.
Parallel Paths in a Challenging Market
The news arrives as OnePlus, the company Carl Pei co-founded in 2013 before departing in 2020, has confirmed it will cease launching new products in Europe and North America. While OnePlus has denied separate reports suggesting a future exit from India, the simultaneous retrenchment of both brands highlights the unforgiving dynamics currently facing smartphone makers. The two companies’ strategies remain independent, but the parallel retreats underscore the intense financial pressure created by escalating component costs.
Neither company has officially confirmed the full scope of the reported changes, and formal acknowledgment may not be forthcoming. Should the report prove accurate, any public response will likely be limited to a denial or a carefully worded statement reiterating a commitment to core regions. The coming months will determine whether Nothing permanently scales back its global ambitions.
Source: www.digit.in