Nothing job cuts could affect more than 100 employees, reports say

Nothing job cuts could affect more than 100 employees as the London-based smartphone maker starts a global restructuring to reduce costs after several years of fast expansion, according to CityAM. The company, founded by OnePlus cofounder Carl Pei in 2020, has begun consulting staff across multiple regions, with the final number of affected roles still undetermined, CityAM reported, citing people familiar with the matter.

Nothing has about 800 employees, according to the report. A reduction of more than 100 roles would be a meaningful cut for a consumer hardware startup that has been trying to build a global brand in smartphones, earbuds and related devices while competing against far larger manufacturers.

The marketing organization appears to be one of the main areas under review. CityAM reported that around 25 positions in Nothing’s global marketing team are at risk, with most of those roles based in the UK. Product marketing, social media, creative, production and project management teams are among the affected groups, according to the report. Some mobile and software product marketing work is expected to shift to India.

Why is Nothing cutting jobs?

Nothing said it is restructuring parts of its global team to prepare for its next phase of growth. The company said it is creating dedicated business units, including what it called an AI-native business unit, and grouping individual country operations into regional hubs to run more efficiently.

The company did not say how many jobs will ultimately be cut, how much money it expects to save, or what specific work will sit inside the AI-focused unit. Consultation processes are still ongoing in some countries, Nothing said.

The cuts come after a period in which Nothing raised more than $450 million from investors including Tiger Global, GV and EQT. The company reached a $1.3 billion valuation last year and has passed $1 billion in cumulative revenue after shipping millions of smartphones, earbuds and other consumer devices.

That growth has carried the cost structure of a hardware company, where supply chains, inventory, marketing and retail expansion can absorb capital quickly. Nothing’s move suggests tighter cost control as the company tries to show the financial discipline expected of a business that has talked about public-market readiness.

In December, Nothing launched a $5 million crowdfunding campaign even though it had raised $200 million only months earlier. Pei told investors at the time that the company wanted to be IPO-ready within three years, and said it was building the governance and financial discipline required of a public company while prioritising sustainable growth.

Nothing also continues to release new devices. Earlier this month, it launched its latest handset, the Phone (4b), priced at around £300. The company’s restructuring will test whether it can keep product momentum while reducing headcount and centralizing more of its operating model.

In a statement, Nothing said: “We’ve shared with employees that we’re restructuring parts of our global team to prepare for our next phase of growth.” The company described the changes as “a necessary step to position us to shape the next era of personal computing.”

This story draws on original reporting from Sifted.