Xiaomi Vice President Manu Jain resigns after 9 years in office

Global Vice President of Chinese smartphone company Xiaomi and former head of the company’s India unit, Manu Kumar Jain has resigned. He was associated with Xiaomi for nine years. The company is in a legal dispute with the Enforcement Directorate (ED) over alleged violations of the Foreign Exchange Management Act (FEMA) in India.

Jain in a tweet Said, “I have had a lot of support in the last nine years and it is very difficult to say goodbye. Thank you all. The end of a journey is also the beginning of a new journey.” Jain was instrumental in strengthening the company’s business in India. He was made the Global Vice President of Xiaomi about five years back. Apart from India, he was heading Xiaomi’s business in Bangladesh, Nepal, Bhutan and Sri Lanka. “As our business grows, it has helped generate over 50,000 jobs in India,” Jain said.

Xiaomi started laying off workers from several of its units last month. The company plans to reduce its workforce by about 15 percent. Xiaomi Its staff strength stood at 35,314 at the end of September. Of these, more than 32,000 are in China. Thousands of workers can be affected by this decision of the company. Lockdown was imposed in many cities to prevent the spread of corona in China. This reduced the demand for electronics. However, Xiaomi has managed to increase market share in Europe.

The company’s unit in India has been accused of providing false information to its banker Deutsche Bank over the years. The company had claimed that it had an agreement for payment of royalty, whereas there was nothing like that. Probe against the company has found that it had ‘illegally’ remitted money under the ‘head’ of royalty to US chip maker Qualcomm and others. A Deutsche Bank executive had told the investigating officers that Indian law required a legal agreement between Xiaomi’s unit in India and Qualcomm for royalty payments. The company told Deutsche Bank that it had such an agreement, whereas it did not.