IoT Services Firm Tuya Smart Denies Mass Layoffs
Tuya Smart, an Internet of Things (IoT) smart product solutions provider, has reportedly been carrying out layoffs involving hundreds of employees since last year. A Tuya Smart spokesman responded on Friday: “The news is untrue, and the company has no plan to lay off employees. Our global business is developing steadily, and the human resources policy will further strengthen the promising teams and businesses according to the company’s strategy. Many positions are open globally, and we will continue to provide customers with high-quality products and services. Talented personnel are welcome to join us.”
One web user posted on Maimai, a career-focused social-networking platform in China, claiming that Tuya Smart will keep only 2,500-3,000 employees, and that 500-700 people are expected to be laid off in total. In addition, the individual pointed out that employees with an annual performance below the firm’s “3.5” benchmark will be involved in the layoffs. Some employees that achieved a high annual performance are able to apply for an “N+1 layoff fee” and leave the company. These layoffs didn’t begin suddenly, with some outsourcing workers and interns losing their positions as early as mid-2021. The performance-related pay and year-end bonuses of all employees have been reduced, which is another sign of the layoffs.
In addition, Zhengguan News on February 25 learned from some internal staff at Tuya Smart that the company is indeed laying off employees, with a total of more than 3,800 people last year. It is expected that 3,000 people will remain, and that the number of layoffs may exceed 800. The employee also said that the turnover rate of Tuya Smart has always been very high.
Tuya Smart is a one-stop smart home solution service application launched by Tuya Technology. It supports features including remote control, one-click connection, intelligent timing reminders and family sharing. It can easily control smart products at home with smartphones. On March 18, 2021, Tuya Smart was successfully listed on the NYSE.
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According to the company’s Q3 financial report in 2021, in the first three quarters of the year, revenue of Tuya Smart increased from $117 million in the same period last year to $227 million, an increase of about 194% year-on-year. The revenue growth rates of Tuya Smart in Q1 and Q2 were as high as 200% and 118%, respectively.
However, its operations suffered huge losses and its R&D investment was also quite large. The financial report shows that revenue of Tuya Smart in 2020 was $179.9 million, a year-on-year increase of 70%, and the net loss was $66.912 million. In 2019, its revenue was $105.8 million with a net loss of $73.097 million. In 2020, the operating loss of Tuya Smart was $69.846 million, and the operating loss rate was -38. 8%. In 2019, the operating loss was $73.44 million, and the operating loss rate was -69. 4%.