What happened: Lei Jun, founder and CEO of Xiaomi, has announced to staff that the company will be undergoing a series of internal restructuring.
On top of the shuffling of top management, Xiaomi will establish 10 new business units: four internet business units, four hardware products units, a technology platform, and an e-commerce platform.
Lei also noted that the company will put more focus on fostering young managerial talent.
Why it’s important: This is the first internal shake-up after the company’s initial public offering in July.
The company is facing no shortage of challenges following its IPO–particularly in the smartphone business where they generated 70% of its revenue.
Xiaomi is now facing increasing competition from industry players like Oppo in both the domestic market and overseas.