Realme Layoffs Hit India Sales Team After Oppo Merger, Sparking Cost-Cutting Fears in 2026 Smartphone Market

Realme, the popular budget smartphone brand, has started layoffs in India shortly after announcing its merger with parent company Oppo. Reports indicate the sales team has been affected, with employees asked to resign by April 30, while retail staff and sales managers remain on duty for one or two more months. This move aligns with Oppo's efforts to streamline operations following the integration announced in January 2026.

Realme launched in 2018 as an independent brand but always relied on Oppo's research and development resources. It shared software experiences with Oppo and OnePlus at times, maintaining separate service centers and insisting on autonomy. The recent merger positions Realme as a sub-brand under Oppo, similar to OnePlus, as part of BBK Electronics' broader cost-cutting strategy. BBK owns multiple brands including Vivo and iQOO, and this consolidation aims to reduce overlap in marketing and services.

The timing reflects a rocky outlook for the smartphone industry, especially Chinese manufacturers. Global phone shipments are projected to drop 2.1% in 2026, with prices rising 6.9% due to memory chip shortages pushing production costs up 8-15%. Mid-range and budget phones, Realme's stronghold, may see lower-quality components to offset expenses. Oppo's integration eliminates redundant sales and service networks in India, Realme's major market, by leveraging Oppo's larger infrastructure.

• Sales team layoffs target redundancies post-merger.
• Oppo provides unified marketing and service support.
• Employees face uncertainty with a short transition period.

While employee futures look uncertain, the merger could benefit consumers. Realme phones will continue under the brand, potentially gaining from Oppo's expanded service centers and improved software support. Recent teases include a phone with a massive 10,001 mAh battery, signaling ongoing innovation despite cuts. Oppo's latest launches, like the Reno 15 series in Europe and rumored Find N6 foldable with a 200MP camera, show the parent company's momentum.

This isn't isolated; Chinese brands face headwinds from supply chain issues and softening demand. Realme's reintegration streamlines BBK's portfolio, focusing resources on competitive edges like batteries and cameras. For India's market, where Realme competes fiercely in budget segments, unified operations might stabilize pricing and availability. However, short-term disruptions from layoffs could affect local sales momentum.

Analysts note that while users might see net positives like better after-sales service, the human cost remains high. Realme's shift back under Oppo marks the end of its brief independence, prioritizing efficiency in a contracting market.