OPPO has reportedly downsized its software and hardware teams after merging with OnePlus

OPPO has reportedly cut roughly 20% of its staff in key software and device teams. The company recently merged its hardware R&D teams and software with its sister smartphone brand OnePlus, a move that comes amidst ongoing global chip shortages and COVID-19-induced economic setbacks.

Apart from economic reasons, Bloomberg, citing unnamed sources, reports that there are other reasons behind the recent consolidation between the two companies. Apparently, OPPO expanded too rapidly when it kept hiring employees in an attempt to take some market share from Apple.

In an attempt to scale back, some of the positions that were cut include were from the ColorOS team as well as an IoT division that focuses on wearables such as smartwatches and earbuds. Apparently, the merger with OnePlus created some redundant positions, which led to OPPO making significant cutbacks in those teams. Currently, the company’s R&D team for smartphones and overseas sales positions haven’t been impacted by job cuts, according to sources speaking to Bloomberg. OPPO declined to comment officially to Bloomberg.

OPPO has heavily invested in markets like India, Southeast Asia, and Europe, but they failed to challenge both Apple and Xiaomi. Not only that, but slowing sales in China thanks to COVID-19’s resurgence means that the company was forced to make some changes.

“The company is spread thin across several fronts, attacking the premium market, making big regional bets and moving into wearables,” Tarun Pathak, research director at Counterpoint Research, told Bloomberg. “The cuts are probably as much about cost savings as it is a change in tack around strategy.”

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