Nothing Disses Rumors of Collapse: CEO Rejects ‘Fake News’ Amid Restructuring

London – Following reports suggesting a dramatic overhaul – including potential market exits, a 40% workforce reduction, and severe financial difficulties – Nothing’s co-founder, Akis Evangelidis, has forcefully dismissed the claims as ‘fake news.’ The company is undergoing a strategic restructuring, but far from abandoning its global ambitions.

Facing Financial Headwinds, Nothing Reasserts Position

The initial report, originating from Digit, painted a bleak picture for the rapidly rising smartphone brand, alleging preparations to withdraw from key markets across the Middle East, Japan, and parts of Europe, alongside significant cuts to R&D spending in both China and the UK. However, Evangelidis swiftly refuted these assertions, stating unequivocally that “we are not shutting down any markets.”

Contrary to the initial narrative, Nothing is actively reorganizing its business operations, focusing on establishing dedicated business units – including a significant investment in artificial intelligence – while consolidating regional operations. This strategic shift aims to improve efficiency, not to scale back the company’s growth trajectory. The executive confirmed that sales of the recently released Nothing Phone (4b) exceeded expectations, achieving 29,537 units on its launch day – a record within its price segment, surpassing initial projections.

“Inaccurate reports are being circulated,” Evangelidis stated on Twitter, attaching a post highlighting the impressive sales figures. “We are… reorganising our teams to prepare for our next phase of growth.” He also acknowledged the impact of the restructuring on employees, emphasizing that decisions regarding staff reductions were made with careful consideration and that the company is committed to supporting those affected.

Despite the positive sales figures, the restructuring has inevitably led to layoffs, though Evangelidis insists the scale of the job cuts is “way overblown,” citing ongoing regulatory constraints that prevent a full disclosure of the numbers at this time. The company’s 105% year-over-year growth in India, driven primarily by the Phone (4a) series, is being re-evaluated in light of rising memory chip costs and a softening market for affordable smartphones – a challenge impacting many manufacturers across the industry.

Furthermore, Nothing’s CMF brand, focused on budget-friendlydevices, will not be launching a new smartphone this year, and the recent departure of key executive Himanshu Tandon has added to the company’s current challenges. Despite these headwinds, Nothing continues to demonstrate a strong foothold in the Indian market, albeit from a smaller base than established competitors. The company’s focus now is on building a more robust and efficient operation for sustained growth.”n