Nothing cofounder dismisses market exit claims as staff cuts confirmed amid supply chain pressures

Nothing cofounder Akis Evangelidis has firmly rejected reports suggesting the smartphone manufacturer is withdrawing from 12 global markets, describing the claims as "fake news." In a statement addressing the circulating rumours, Evangelidis clarified that the company is not shutting down operations in any region but is instead consolidating its presence into regional hubs to improve efficiency. This strategic shift is part of a broader corporate reorganisation aimed at preparing the firm for its next phase of growth.

While confirming that staff layoffs are occurring as part of this restructuring, Evangelidis characterised the reported scale of the cuts as "overblown." He noted that specific details regarding the number of affected employees could not be disclosed due to regulatory compliance and ongoing local consultation processes. The company stated that decisions impacting livelihoods were made with care and expressed gratitude for the contributions of affected team members, emphasising a commitment to supporting them through the transition.

The restructuring includes the introduction of an "AI-native" business unit and dedicated teams designed to shape the future of personal computing. Evangelidis also sought to correct narratives regarding product performance, claiming that the Nothing Phone 4B sold 29,537 units on its first day. He asserted that this figure broke records within its specific price segment, directly countering reports of underwhelming sales figures.

These operational changes come against a backdrop of significant financial pressure on the midrange smartphone market. Nothing has cited rising component costs and a global memory shortage as key challenges. CEO Carl Pei previously noted that memory costs for the Phone 4A have doubled since its launch earlier in the year, with RAM now accounting for up to half the cost of a new device. These supply chain constraints have been severe enough to impact the company’s budget brand, CMF, which will not release a new phone for the remainder of the year.

The company called on the media to uphold factual reporting and journalistic integrity, urging a distinction between inaccurate rumours and the reality of its operational adjustments. As the technology industry continues to grapple with hardware manufacturing costs driven by component scarcity, Nothing’s move to consolidate operations and pivot towards AI-focused business units signals a strategic adaptation to the current economic landscape.