By Greg Gao

(JW Insights) Aug 9 -- Xingji Meizu (星纪魅族), the smartphone arm of Chinese auto manufacturer Geely, announced on August 8 that faced with the uncertainty of the global economic environment, it has decided to terminate its in-house chip business and further focus on product innovation, software, and user experience, according to a finance news outlet Science and Technology Innovation Board Daily.

The latest move will involve personnel adjustments and optimizations. Xingji Meizu is actively coordinating and finding solutions to resolve the issue in a lawful and compliant manner, said the company.

Earlier reports stated that due to a lack of actual output and high investment, the AR chip business unit of Xingji Meizu will undergo personnel adjustments. This Wuhan-based division has about 200 employees, with over 40 recent graduates hired this year. The adjustment plan involves the dismissal of all recent graduates while retaining a small number of senior employees. The company is currently in negotiations with employees regarding their severance compensation.

The chip research institute under Xingji Meizu appears to be on the verge of dissolution. The division chief was a former high-level technical executive from Huawei's HiSilicon. In addition to Roca, the personnel affected by this round of layoffs include two technical experts from Huawei, and nearly 40 master's graduates from top-tier universities, according to media reports.

Xingji Meizu was founded on March 8 by Hubei Xingji Technology, a company controlled by Geely founder Li Shufu, and Zhuhai-based smartphone maker Meizu. Shen Ziyu has been appointed as the chairman and CEO of the new company.

Meizu has formed a team dedicated to Flyme Auto, and established a R&D center in Wuhan. Xingji Meizu will deeply integrate consumer electronics and automobiles related to Flyme Auto. Meizu and Xingji have also carried out in-depth integration in the design of mobile phone products.