Reuters has interviewed more than 20 current and former employees of Chinese drone maker giant DJI, revealing that a large number of employees have been fired or resigned so far this year as a result of the blow to U.S.-China relations and infighting between the company’s U.S. team and its China headquarters. And in light of the departure last month of the head of DJI’s U.S. research and development operations, the company also fired about 10 remaining research and development staff at its main research center in Palo Alto, Calif.
The report cited a number of former executives and competitors of the company as saying that the U.S. Commerce Department’s inclusion of DJI on its “Entity List” last December, which prohibits DJI from purchasing or using U.S. technology or components, may have affected its ability to meet the needs of U.S. customers. As of last year, about one-third of DJI’s 200-plus employees in North America had been laid off or joined competitors in its California and New York offices.
DJI is said to have become a symbol of Chinese innovation since its founding in 2006. But along with huawei and ByteBeat, DJI is one of dozens of Chinese companies affected by the U.S.-China trade and diplomatic standoff. Industry sources say that although the U.S. federal government accounts for a relatively small percentage of DJI’s business, the restrictions could have a “chilling effect” as other buyers fear tougher measures in the U.S. in the future.
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