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OPPO Reducing Redundancies After Merger with OnePlus
OPPO is cutting around 20% of staff in key software and device teams after it merged operations with affiliate OnePlus, the first major consolidation in a Chinese mobile industry struggling with chip shortages and Covid-triggered economic shocks.
OPPO, in 2016 became the country’s top-selling brand, is retrenching after expanding too rapidly on the hiring front in recent years and attacking a premium segment dominated by Apple Inc., people familiar with the matter said. The cuts effect a team that customizes Android into its in-house ColorOS, and an Internet of Things division that develops a spectrum of wearables such as smartwatches and earbuds, said the people, asking not to be identified discussing a private matter.
OPPO merged with OnePlus in mid-2021 to pool development resources and reduce overhead, but it created redundant positions. Its R&D team for phones and overseas sales positions haven’t been impacted yet by cuts, one of the people said. Heavy investments to expand into markets from India to Southeast Asia and Europe have not paid off as expected against fierce competition from Xiaomi Corp. and Apple. It’s now contending with a Chinese retail slowdown as Covid’s resurgence locks down parts of the country. Forays into adjacent arenas also haven’t worked out. After several years, OPPO’s share of the global smartwatch market remains under 1%, while it accounts for a mere 1.7% of earwear shipments, IDC analyst Bryan Ma estimated. At its peak, OPPO showered retailers with handsome bonuses to grab market share and commissioned a headquarters building in Shenzhen designed by Zaha Hadid Architects, complete with a 20-story vertical lobby and an art gallery. The company, closely held by a secretive employees’ fund which counts businessman Duan Yongping and his protégé Tony Chen as key founders, doesn’t disclose financial details. OPPO’s global smartphone shipments surged 37% in the second quarter, but that was barely enough to keep its No. 4 ranking. OnePlus has made deeper inroads into the U.S. market than any other Chinese brand to date, but it’s also failed to directly challenge Apple and Samsung Electronics Co. among premium customers.
OPPO is cutting around 20% of staff in key software and device teams after it merged operations with affiliate OnePlus, the first major consolidation in a Chinese mobile industry struggling with chip shortages and Covid-triggered economic shocks.
OPPO, in 2016 became the country’s top-selling brand, is retrenching after expanding too rapidly on the hiring front in recent years and attacking a premium segment dominated by Apple Inc., people familiar with the matter said. The cuts effect a team that customizes Android into its in-house ColorOS, and an Internet of Things division that develops a spectrum of wearables such as smartwatches and earbuds, said the people, asking not to be identified discussing a private matter.
OPPO merged with OnePlus in mid-2021 to pool development resources and reduce overhead, but it created redundant positions. Its R&D team for phones and overseas sales positions haven’t been impacted yet by cuts, one of the people said. Heavy investments to expand into markets from India to Southeast Asia and Europe have not paid off as expected against fierce competition from Xiaomi Corp. and Apple. It’s now contending with a Chinese retail slowdown as Covid’s resurgence locks down parts of the country. Forays into adjacent arenas also haven’t worked out. After several years, OPPO’s share of the global smartwatch market remains under 1%, while it accounts for a mere 1.7% of earwear shipments, IDC analyst Bryan Ma estimated. At its peak, OPPO showered retailers with handsome bonuses to grab market share and commissioned a headquarters building in Shenzhen designed by Zaha Hadid Architects, complete with a 20-story vertical lobby and an art gallery. The company, closely held by a secretive employees’ fund which counts businessman Duan Yongping and his protégé Tony Chen as key founders, doesn’t disclose financial details. OPPO’s global smartphone shipments surged 37% in the second quarter, but that was barely enough to keep its No. 4 ranking. OnePlus has made deeper inroads into the U.S. market than any other Chinese brand to date, but it’s also failed to directly challenge Apple and Samsung Electronics Co. among premium customers.
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