It is reported that Nothing plans to withdraw from more than 12 markets around the world and significantly lay off employees.

Following OnePlus’ previous announcement to withdraw from the North American and European markets, the well-known technology brand Nothing also reported that it would shrink its global business. According to the latest industry reports, Nothing is currently considering withdrawing from at least 12 global markets, including the Middle East, Japan and parts of Europe, but the specific list of countries involved has not yet been announced.

In addition to shrinking overseas markets, Nothing is also facing severe human organization adjustments. The report pointed out that the company plans to reduce the overall number of employees by about 40%. Among them, the research and development (R&D) department will bear the brunt. Its R&D team in China is expected to lay off about 50% of its employees, while the London team will also face a layoff ratio of 30% to 40%.

Industry analysts pointed out that the continued rise in memory chip prices is the main external inducement that triggered this business adjustment. Compared with large manufacturers, brands like Nothing, which have a smaller share of the overall smartphone market, are under greater pressure in the face of soaring component costs, especially in the mainstream mid- to low-end markets where profit margins are already limited. The surge in costs has placed a heavy burden on operations.

Judging from sales data, the market performance of Nothing’s recent products is far from ideal. According to reports, the cumulative sales of Nothing Phone (4b) since its release are only about 20,000 units, while the combined global sales of Nothing Phone (4a) and Nothing Phone (4a) Pro are only about 150,000 units.

While shrinking other regions, Nothing plans to refocus its strategy on its best-performing key markets. For example, in the second quarter of this year, Nothing was the fastest growing smartphone brand in the Indian market. Facing the challenge of rising supply chain costs, shrinking non-core businesses and focusing on advantageous markets is becoming its response to the current market environment.