Xiaomi has been able to build official headquarters in large cities in China, their country of origin, but thanks to a series of interesting trades agreements, the Asian giant has decided to create a new headquarters in a level 2 city, it is Wuhan. To be more exact, the company is beginning to build a headquarters in the central Chinese province of Hubei. However, Xiaomi is not the only big company that is starting to move to smaller cities, because other companies like Huawei are also implementing this strategy change.
Reasons for Xiaomi’s growth
There have been a number of reasons why Xiaomi has decided to build a new headquarters specifically in Wuhan, among which we can highlight the fact that previously the company already had the intentions of creating R&D headquarters due to the presence of several renowned universities in the region. However, now they also want to grant a total of 10,000 jobs on campus and likewise, have a headquarters that is able to focus solely on artificial intelligence. So much so, that the company’s CEO, Lei Jun, declared saying that “Wuhan is perfect for an R&D center because it is conveniently located in the center of China and has a large number of talents thanks to renowned universities located in the region. With plans to build a headquarters with up to 10,000 employees, Xiaomi wants to establish Wuhan as the new center in the AI era”.
This idea of the new headquarters is not something that was planned from one day to the next; Xiaomi has been conducting conversations for 2 years. In 2017, Xiaomi achieved a strategic partnership with the government of Wuhan, after which they managed to open several offices in the Optical Valley located in the city, and now the launch of the new headquarters is another step in this commercial strategy. However, this new HQ is expected to be complete in 2 to 3 years. After this, Xiaomi will begin a relocation plan for their employees with the same payment and a series of incentives, such as a bonus of 30,000 yuan to carry out the relocation and also the company will help employees to get a home in the locality.
This is only a small step for Xiaomi since they want to reduce the operating costs of large companies, and this is not the first time they have carried out a move of this type like other large companies.
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