News: AI specialist SenseTime initiates new round of layoffs amid financial challenges

Strategic HR

AI specialist SenseTime initiates new round of layoffs amid financial challenges

As per the statement released, the company wants to "optimise its organisational and talent structure" to better align with its operational needs.
AI specialist SenseTime initiates new round of layoffs amid financial challenges

Chinese artificial intelligence (AI) software developer, SenseTime, is once again letting go of employees in an effort to curb financial losses.

SenseTime, as reported by the Chinese news website Caixin, has been experiencing a downturn in its performance. Over the past few months, the company has been progressively reducing its workforce and curbing new hiring efforts. 

A former employee shared with the publication that this downsizing trend has been ongoing. Notably, the company had undergone a substantial wave of layoffs in September of the previous year, as stated by a current employee.

An employee from the Smart City Group within the company mentioned that their department is currently reducing its workforce by approximately 10% to 15%. Another worker disclosed that their team has been instructed to halt the development of new versions for existing products.

In a response provided to Caixin on Sunday, SenseTime conveyed that it has undertaken strategic modifications in response to shifts in the market and its internal progression. The company has undertaken the task of "optimising its organisational and talent structure" to align more effectively with its requirements, as stated in the released statement.

SenseTime, which completed its listing in Hong Kong in December 2021 and declared itself the largest AI software company in Asia in its prospectus, continues to operate with substantial financial losses.

In 2022, it disclosed losses amounting to 6 billion yuan ($823 million) attributable to equity holders, representing a decrease from the 17 billion yuan reported in 2021.

By downsizing its workforce, SenseTime is aligning itself with a trend seen across China's broader tech sector. In 2022, many tech companies in the country underwent substantial layoffs as they navigated challenges stemming from a decelerating domestic economy and the repercussions of a regulatory crackdown that impacted the entire industry. 

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Topics: Strategic HR, #HRCommunity, #Layoffs, #HRTech

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