On Friday, LatePost reported that an internal letter released by Xiaomi on December 10th showed that founder Lei Jun had handed over a business he was directly managing, the Business Middle Platform Department.
The department was established in December last year and was responsible for the digitalization and data asset construction and operation of Xiaomi. This department has now been merged into the Information Technology Department, and its principle reports to Wang Xiang, President of Xiaomi.
This is the third business to be handed over by Lei Jun within the last month. The other two were the YOUPIN E-commerce Department and the Software and Experience Department (MIUI Operating System Department), which have been merged into Xioami China and the company’s Smartphone Department respectively. The responsible persons report to Lu Weibing, President of Xiaomi China, and Adam Zeng, President of the Smartphone Department.
One of the reasons for the handover is that Xiaomi’s car-making business has made substantial progress in recent months. The new company has its factory is located in Yizhuang, Beijing and is planning to start mass production within the next three years. As a result, Lei Jun is focusing more effort on ensuring that the car manufacturing process is progressing on shedule.
After the adjustment, there are now seven senior executives left who report directly to Lei Jun at the business level of Xiaomi and are responsible for the design, production and sales of smartphones and IoT (Internet of Things) equipment in addition to the long-term retainment and capture of users. These are all core businesses of Xiaomi.
In addition to Lei Jun’s reduction in direct management of portions of the company, Xiaomi also adjusted its International Business Department last Friday. The core goal was to integrate several business departments such as overseas sales regions which were previously divided by districts, and international, network-wide e-commerce sales departments & operators and business development departments that were also previously divided by channels.
The shuffle will also see the company’s Indian regional operations department (which was not originally an international business department) into an international “sales department” in order to open up all districts and channels. Xiang Zheng, who joined Xiaomi in 2018 and has 25 years of working experience in the communication industry, is in charge with this work and reports to Lu Weibing, President of the International Business Department.
This is the first major adjustment since Lu Weibing took over the International Business Department in March this year. A Xiaomi source said that the adjustment was to achieve the goal of “the top seller for three years” put forward by Lei Jun earlier in August.