Xiaomi, the prominent smartphone manufacturer, is taking a strong stance against corruption with the dismissal of two regional general managers in its International Business Department.
Corruption Crackdown: Xiaomi Sends Strong Message with Dismissals of Regional Leaders
According to a report by Sina Technology, Chen Bingxu, the former general manager for the Latin American region, was accused of soliciting bribes, accepting expensive gifts, and indulging in lavish entertainment funded by business partners.
Owen, the ex-general manager of Western Europe, is alleged to have fabricated outsourcing deals involving substantial sums of money. Both executives were reportedly key figures in propelling Xiaomi’s overseas expansion.
Decisive Action
Xiaomi has taken decisive action. Chen Bingxu has been dismissed, stripped of stock options, and is reportedly required to compensate the company for financial losses. In Owen’s case, not only has he been fired, but the company has also initiated legal proceedings against him, pursuing both criminal charges and civil damages.
The company’s “Zero Tolerance” approach to corruption sends a clear message to its employees worldwide. It’s particularly noteworthy considering the timing – Xiaomi is currently battling Samsung and Apple for market dominance in Europe, and Latin America presents a promising growth opportunity. Losing key regional leaders due to misconduct could have significantly hampered Xiaomi’s progress.
Market Performance
Looking at Latin America, the Canalys report indicates that Xiaomi shipped a healthy 5.3 million units in Q1 2024, capturing a 15.3% market share. This represents an impressive 45% year-on-year growth for the company. Meanwhile, in the European market, Xiaomi has secured the third position with a respectable 16% market share in Q1 2024.
