Meizu to cut 5% of their workers

After boasting with a gigantic sales record of more than 20 million sold devices, Meizu surprisingly announced to cut 5% of their 4000 workers.
It is planned to trim these 200 people until mid February this year.
But thats not everything, at the same time Meizu plans to grow another 10%!

According to Li Nan the idea came from current CEO, Bai Yongxiang, who was inspired by the so called “20-70-10” model, which was invented by former General Electrics Chariman Jack Welch.

But what does “20-70-10” even means? Short explained, it is a way how to categorize employees after their productivity. 20% build the top, 70% the middle and the over 10% the bottom.
Despite General Electric abandoned this method after Welch left the company, it might not be that bad for Meizu to utilize it. Especially in consideration of the huge software problems Flyme OS is facing, due to obviously unmotivated and uninterested developers.

However, as Li Nan added, the decision was rather related to the current market situation.
In 2015 Meizu and other manufacturers noticed a slow down of the market. Even Xiaomi was struggeling to reach their 80 million devices goal for 2015. Additionally Meizu did themselves no favor with their low and midrange devices. Even though Alibaba supported Meizu to keep the prices competitively, they faced challanges in hardware profatibility.

Source – Bloomberg