The smartphone manufacturer Black Shark has gotten into financial difficulties. There are currently many indications that the company is threatened with final closure.

Xiaomi-backed gaming smartphone maker Black Shark faces new challenges. South China Morning Post reports that the company has laid off most of its employees. Most of them didn’t get any severance pay. The reason for this is the failed takeover negotiations with the tech giant Tencent Holdings.

Black Shark has reduced the number of employees from over 1,000 to just over 100 since August 2022. On Tuesday, the company informed the workforce that it was experiencing enormous operational difficulties. Therefore, it is temporarily unable to pay the full amount of the severance payments. It doesn’t seem out of the question that the company is about to go bankrupt.

To the O2 test card for €0 (display)

Some laid-off employees have vented their anger at the reduced severance pay on social media. After a post from CEO Luo Yuzhou saying “Good morning,” the comments section was flooded with calls for promised severance pay. One of the top-rated comments read: “Please pay the severance pay! I need the money for the New Year festival.”

“How can I survive the Lunar New Year with 2,000 yuan compensation? How can I tell my family about this?” users asked in the comments. Some users reported that they received only 2,000 yuan (US$296) in compensation.

No one from the company showed up, and none of the senior staff, including the CEO, could be reached, said the clerk, who gave his last name as Yang. He added that they should receive the first of six phases of payments this week.

The original for this article “Smartphone manufacturer Black Shark appears to be on the verge of collapse” comes from