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OnePlus has reportedly made severe cutbacks in its European operations. While the tech brand has seen massive growth in other markets in recent years, it has also faced significant headwinds across the continent at the same time, leading to previous rounds of layoffs.
Engadget sources say the layoffs were made to Italian and Spanish teams last summer before they were completely eliminated. The UK team also experienced widespread rotation. The latest cuts were made to units in France, Germany and the United Kingdom, and were reduced from 20 members each to around 3. All the countries mentioned represent the five main economies of the European Union (including the United Kingdom, when it was still a country). member country).
OnePlus said in a statement that it is carrying out a typical “strategic restructuring in Europe” and “even hiring” there as well. A source said the layoffs have not affected crews in Belgium, Denmark, Finland and the Netherlands, seen as growth markets internally. Some employees were even asked to move to Helsinki, which can replace London to become OnePlus’ new European base.
There is probably no prominent reason why the company faces obstacles and underperforms in major European markets. External economic factors include Brexit, the coronavirus pandemic, and a substantial increase in costs, reportedly coming from Qualcomm with its 5G components. However, OnePlus has also contributed to its own failings with moves that burned some consumers, such as moving away from value flagship phones towards more premium devices. The company has also been unable to maintain long-standing network transport deals in the UK – it left a 3-year partnership with O2 last year to bond with EE for its first 5G phone, but that deal doesn’t appear to be taking place this year. The telephones.