Nothing is preparing to exit at least 12 global markets, including Japan, the Middle East, and parts of Europe, as smartphone sales outside India continue to struggle. This strategic retreat signals a major contraction for the hardware maker, which previously relied on aggressive international expansion to build its brand presence. Buyers in affected regions should expect limited availability for future Nothing and CMF devices, as the company shifts its focus to a single high-growth market. The move also involves cutting approximately 40% of its global workforce, with significant reductions planned for its China-based R&D team and London operations.
Hardware maker slashes global workforce and exits regions including Japan and the Middle East
The retreat centers on the performance of specific hardware models, particularly the Nothing Phone (4b) and the Phone (4a) series. Reports indicate that the Phone (4b) shipped only about 20,000 units globally since its launch, a figure that falls well short of expectations. The Phone (4a) and Phone (4a) Pro combined for roughly 150,000 units, which still proved insufficient to sustain a broad global distribution network. These weak sales figures have directly influenced the decision to pull back from multiple regions where the brand failed to gain significant traction.
India stands out as the only major market where Nothing has maintained strong momentum, identified as the fastest-growing smartphone brand in the region during Q2 2026. The company achieved 105% year-over-year growth in India, providing a stable base for its remaining operations. This contrast highlights the challenges of competing in global markets where established rivals dominate consumer loyalty and distribution channels. The company now appears to be consolidating resources to protect and expand this single profitable foothold.
The restructuring extends to Nothing's subsidiary brand, CMF, which has no new smartphone planned for 2026 due to rising memory costs. Co-founder Akis Evangelidis cited these increased component prices as the primary reason for pausing new device development in the sub-brand line. Additionally, Himanshu Tandon, the head of CMF in India, has stepped down from his role, further indicating internal shifts within the company. These changes suggest a broader effort to reduce operational overhead and focus on core profitability rather than aggressive product launches.
Source: NotebookCheck
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