Gionee Announces Massive Layoffs, Founder In Gambling Debts

by Habeeb Onawole 0

Gionee has been under the radar since the beginning of the year. It hasn’t announced any new phone and it didn’t attend MWC 2018. Latest reports say the Chinese manufacturer is facing some troubles.

Last November, Gionee announced 8 new phones at an event in Shenzhen.

The manufacturing arm of the company is said to have laid off some of its staff and there are reports the headquarters will be dismissing up to 50% of its workers. Gionee is said to have a workforce of about 8,000.

Some employees who spoke with Netease, a Chinese media, said the company went on a 2-month break but were not paid their full benefits. They also said the layoff was presented to them as a choice between staying and being on a sort of compulsory leave or leaving and getting your benefits later. Whichever one you choose, you won’t be getting any payment for a while.

The bottom line is that the company is finding it hard to pay its workers. It is also said to be unable to pay suppliers and advert partners. Earlier this year, A Chinese court is said to have frozen 41.4% of the shares of the company’s founder, Liu Rong, for a period of two years due to unpaid gambling debts.

READ MORE: New Live Photos of Gionee W919 Clamshell Phone

Despite the financial woes, Gionee is planning an expansion in India. It is also said to be working on a new smartphone with an in-display fingerprint scanner.

(Source, Via)

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