OnePlus fires 90% of the staff in Europe. What is happening?
OnePlus has scaled back its workforce in the UK, France and Germany, cutting it by 90 percent, and leaving a maximum of three employees in key roles per area, so that it can still manage operations in their respective markets.
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The Engadget website reported it: a company spokesman issued a statement to the famous online site, explaining that the layoffs were due to a “normal restructuring” phase throughout Europe in order to focus on the stronger markets. It is unclear exactly how many employees have been laid off.
According to Engadget sources, other countries in Europe including Denmark, Finland, the Netherlands and Belgium have not been affected by the cuts. Some employees have also been invited to move to the new OnePlus a location London it’s at Helsinkiin Finland.
L’CSS Insight analyst Ben Wood attempted to explain the possible reason for the restructuring in Europe. Wood attributes it to the decline in sales in the United Kingdom and the availability of the OnePlus 8 models in the list of a single operator: 3 UK. In fact, both EE and O2 no longer brought OnePlus phones to the portfolio after the 7 Pro 5G and OnePlus 6T models.
Wood explained that OnePlus has difficulty maintaining long-term relationships with telephone companies across Europe. “This saw OnePlus jump from one manager to another. There also seems to be a growing belief that OnePlus has fallen into the trap of an excess of promises and an insufficient response, just the opposite of what happened at the launch. ”
OnePlus has seen competition in Europe grow sharply in recent years, with the arrival of many Chinese competitors including Realme, Xiaomi, Redmi, Asus, Oppo and, more recently, I live. And so, she stepped away from her original message of offering high-end hardware at aggressive prices, and was no longer able to capture new customers, even losing those who had represented her hard core.
It is too early to understand the commercial success they are getting OnePlus 8 and 8 Pro, especially in the presence of the COVID-19 pandemic, which has generated an overall drop in smartphone sales worldwide.
However, the prices of the OnePlus 8 line (especially that of the Pro version) are prohibitive and it will not be easy to convince consumers to consider purchasing a product from the Chinese company instead of a competing smartphone.