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Chinese DJI Lost Many Employees in US Branches Due to US Sanctions
The leader of the consumer drone market, China’s DJI Technology, has built such a successful business over the past decade that it has almost ousted all competitors from the market, including in the United States. But according to Reuters, the company’s American business has been plagued by internal turmoil in recent months, with the company actively laying off and laying off staff, as evidenced by interviews with more than two dozen current and former employees.
Reuters / Christinne Muschi
The loss of key managers, some of whom have joined rivals, has exacerbated the problems caused by US sanctions against Chinese companies, and the unthinkable prospect of losing DJI’s dominance looms just ahead, according to four anonymous whistleblowers, including two senior executives who worked for the company. until the end of 2021.
About a third of DJI’s more than 200 people in the Americas region were fired or left the company in the past year from offices in Palo Alto, Burbank and New York. This was announced by three former and one current employee. In February of this year, DJI’s head of research and development resigned, and the company laid off the remaining employees of this flagship US research center in Palo Alto, California, which numbered approximately 10 people.
Reuters / David Kirton
DJI, founded and run by billionaire Frank Wang, says it has made the difficult decision to downsize its Palo Alto workforce to meet the company’s changing needs. “We thank the affected employees for their contributions and remain committed to our customers and partners,” the company said, adding that its North American sales are growing rapidly. — Despite the misleading claims of competitors, our corporate customers understand that DJI products provide reliable data protection. Despite rumors from anonymous sources, DJI is committed to serving the North American market. «.
DJI, which has become a symbol of Chinese innovation since its founding in 2021, is one of dozens of companies that have come under fire due to the trade and diplomatic standoff between Washington and Beijing — other big names include Huawei, ZTE and ByteDance.
Reuters / Christinne Muschi
DJI’s technical superiority and manufacturing capabilities will ensure DJI’s near-term leadership in both the US and other consumer drone markets. But American sanctions, the refusal of the military, police and government services from its drones, as well as the reduction of the American staff in the future will inevitably undermine the position of the Chinese manufacturer. Due to sanctions imposed in December, DJI can no longer purchase or use US technology or components.
That December, Romeo Durscher, Senior Director of Public Safety Implementation, left the company and has played a central role in building a business to supply UAVs to non-military US government departments and agencies since 2021. This former NASA project manager and influential figure in the drone industry now works for the Swiss company Auterion, a DJI rival. He said he left because he was discouraged by staff cuts and sentiment within DJI. “Leaving a market leader who is really far ahead of the rest was not an easy decision,” he said. «But these internal battles distracted from the real goal, and in 2021 things got even worse …».
Reuters / Edgar Su
DJI does not publish sales data. US Department of Defense estimates the American non-military drone market at $ 4.2 billion. Consulting firm DroneAnalyst said DJI controls nearly 90% of the consumer market in North America and over 70% of the industrial market.
The December sanctions and ban on the purchase of US parts may affect the firm’s mobile apps, web servers, and some battery and imaging products. In December, DJI announced that, despite the sanctions, US customers will be able to buy and use its products.
Reuters / Christinne Muschi
DJI has reportedly been in a fever in recent years, with Mr Dursher as reporting to 12 different bosses in Shenzhen in his 6 years of work. In addition to Romeo Durscher, a number of key American executives left DJI last year, including Business Development Director Cynthia Huang, who is also now at Auterion.