Nothing said today that it’s laying off some staff members and “reorganizing” its teams, denying rumors that the company would be exiting various global markets as sales declined. Nothing cofounder Akis Evangelidis said on X that the reorg is being completed in an effort to prepare for the company’s “next phase of growth,” including the introduction of an “AI-native business unit.”
“Decisions that impact people’s livelihoods are never taken lightly, and we know how difficult this transition is for our team members who are affected,” Evangelis said.
⚠️FAKE NEWS… We are not shutting down any markets. Inaccurate reports are being circulated; Phone (4b) sold 29,537 units on Day 1 only, breaking records in its price segment.
What we are doing is reorganising our teams to prepare for our next phase of growth. We are…
[pic.twitter.com/gjA8A8GGfM]— Akis Evangelidis (@AkisEvangelidis)
[July 24, 2026]
Evangelidis’ statement is a direct response to reporting from digit.in that claimed Nothing would be exiting 12 markets due to a decline in global shipments. That reporting claimed Nothing’s total global headcount would be reduced by 40%, with some teams facing layoffs of up to 50%. Evangelidis neither confirmed nor denied these numbers in his response.
What Evangelis did confirm is that the company’s new budget phone, the Nothing Phone 4b, sold nearly 30,000 units in its first day, which he claims breaks records at its price point. The phone launched on July 7 at $400—a steal for a smartphone, these days.
But rising memory prices are making smartphone production much more expensive than ever before. Even smartphone titans like Apple are hiking prices across the board. And if a company with as much cash as Apple can’t eat those extra component costs, there’s no way a smaller company like Nothing can do so without taking a huge hit. Evangelis’ assertion that digit.it’s reporting is “FAKE NEWS” is certainly a bit of an exaggeration: layoffs are indeed happening at Nothing.
Whether or not Nothing will end up exiting some markets due to these rising component costs remains to be seen. Earlier this month, OnePlus exited North American markets due to what it called a “proactive global strategy adjustment.” Soon U.S. consumers might just be left with Samsung and Apple as their only choices for smartphones.