Nothing says it is not exiting markets. Its restructuring suggests a broader reset is underway

Nothing has pushed back against reports that it is shutting down operations across multiple international markets, but its own response confirms the company is undertaking a significant organisational restructuring.
The report, published by Digit, claimed the London-based smartphone maker is preparing to wind down operations in 12 or more markets over the coming weeks, including Japan, the Middle East and parts of Europe. It also said the company plans to reduce its global workforce by around 40 per cent, with the R&D teams in China and London facing cuts of roughly 50 per cent and 30-40 per cent, respectively.

On the commercial front, the report estimated that the recently launched Phone (4b) had shipped around 20,000 units globally since launch, while the Phone (4a) and Phone (4a) Pro had sold a combined 150,000 units. It contrasted those figures with an estimated 2 million smartphones sold by Nothing globally in 2025.


Nothing co-founder and India President Akis Evangelidis responded on X, rejecting several of those claims. He said the company is “not shutting down any markets” and disputed the sales numbers, stating that the Phone (4b) sold 29,537 units on its first day and recorded the strongest launch in its price segment. He also described the reported 40 percent workforce reduction as “way overblown.”


At the same time, Evangelidis confirmed that Nothing is reorganising its business. According to his statement, the company is creating dedicated business units, including an AI-focused division, while consolidating country operations into regional hubs to improve efficiency. He acknowledged that some roles have been affected but said further details could not be shared because of regulatory requirements and ongoing consultation processes in certain markets.

The distinction between exiting a market and managing it through a regional hub is significant. Consolidation does not necessarily mean products will no longer be sold in those countries. Devices, after-sales support and warranty services can continue through regional operations rather than local teams.

However, such a shift can alter how a company operates in those markets. Local teams typically manage relationships with retail partners, carriers, marketing campaigns and product launches. As responsibilities move to regional hubs, companies often prioritise markets based on scale and commercial importance.

India appears to remain one of Nothing’s priority markets. According to Counterpoint Research, the company was India’s fastest-growing smartphone brand in the second quarter of 2026, recording 105 per cent year-on-year shipment growth. The company also manufactures devices in Chennai, while Evangelidis continues to lead its India operations.

That momentum, however, comes against a more challenging backdrop for the broader smartphone industry. Counterpoint Research has said memory prices have increased sharply since late 2025, putting pressure on manufacturers, particularly in the entry-level segment. During the second quarter of 2026, India’s sub-Rs 20,000 smartphone segment contracted by around 45 per cent year-on-year.

Nothing has already confirmed that it will not launch a successor to the CMF Phone 2 Pro in 2026, with Evangelidis previously citing higher memory costs as a key factor. Since CMF has been an important contributor to the company’s volumes in India, the absence of a new device in that portfolio could affect its product mix over the coming year.

The restructuring also comes as smartphone brands across the industry reassess their international operations amid slower demand and rising component costs. For Nothing, whose growth strategy has relied on expanding into new markets while strengthening its position in India, the focus now appears to be on improving operational efficiency without withdrawing support for existing customers.

For consumers, Nothing has said that support, warranty services and product availability remain unchanged. The larger question is how the company’s regional operating model evolves over the coming months and whether consolidation affects the pace of launches, retail presence or investment in specific international markets.

We will follow this story actively and keep the readers posted about this.