Wang’s statement followed reports that the company was considering substantial layoffs by the end of February, providing an N+1 compensation package without negotiation. In China, N+1 compensation is a common severance compensation standard, where N represents the number of years the laid-off employee has worked for the company. A Xiaomi employee anonymously claimed on Feb.6 that the tech company was planning a large-scale layoff on Feb. 29, with a compensation of N+1, according to local media outlet Jiwei. An internal Xiaomi employee informed a Jiwei reporter that the current restructuring does not mean a large-scale layoff, but falls within the regular scope of annual personnel-optimization efforts, impacting a small number of employees. Chinese phone brands Oppo, Vivo, and Xiaomi ranked third, fourth, and fifth, respectively.