Nothing layoffs confirmed as cofounder rejects market exit report
Nothing cofounder Akis Evangelidis says staff cuts are part of a reorganization, not a pullback from 12 markets.
By Hana Yoshida · Markets Reporter
2 min read
Nothing layoffs are part of a company reorganization, cofounder Akis Evangelidis said, while disputing a report that the phone maker plans to leave 12 markets. The comments matter because they clarify that the company is cutting some roles while saying its international sales footprint is not being shut down.
Evangelidis responded on X after Digit reported that Nothing was preparing to exit 12 markets amid declining global shipments. He said reports circulating about the company were inaccurate and that Nothing is not closing down in any markets.
The cofounder acknowledged changes affecting staff, saying some positions had been hit by the restructuring. He said Nothing could not provide more detail because of regulatory requirements and local consultation processes, but said the reported figures were overstated.
Is Nothing exiting markets?
Evangelidis said Nothing is not shutting down any markets. According to his post, the company is instead grouping individual country operations into regional hubs so it can run more efficiently.
He also said Nothing is creating dedicated business units, including one focused on what he called “AI-native” products or operations. The company did not disclose which countries are being grouped into hubs, how many employees are affected, or when the restructuring will be completed.
What did Nothing say about Phone 4B sales?
Evangelidis also pushed back on claims that Nothing’s Phone 4B had weak demand. He said the device sold 29,537 units on its first day and set a record in its price segment.
Nothing did not provide additional regional sales detail in the comments cited by The Verge. The company’s statement focused on denying a market exit and framing the staff reductions as part of a broader operational shift.
Component costs add pressure to Nothing’s phone business
The Verge reported that the update comes as higher component prices are weighing on the midrange smartphone market, where Nothing has typically competed. Those costs have already affected the company’s product plans, according to earlier comments from its executives.
Last month, Evangelidis said Nothing’s budget CMF brand would not release a new phone this year because component shortages were continuing, The Verge reported. Nothing CEO Carl Pei also said last month that memory costs for the Phone 4A had doubled since that device launched earlier in the year.
Pei said RAM can now make up half the cost of a new phone, according to The Verge. That cost pressure helps explain why a company selling lower-priced devices may be reviewing staffing, product schedules and country-level operations, even as Nothing says it is not withdrawing from markets.
This story draws on original reporting from The Verge.