Nothing's co-founder pushes back on major shutdown rumors

After a report claimed Nothing was preparing to pull out of 12 markets, cut 40% of its workforce and deal with severe financial strain, the company's co-founder has publicly pushed back, calling the claims "fake news".

Nothing's Akis Evangelidis took to social media to deny some of the report's biggest allegations while confirming that the company is going through a restructuring that has affected employees.

"We are not shutting down any markets," Evangelidis wrote and added that "inaccurate reports are being circulated".

What Nothing says

One of the report's most shocking claims was about the newly announced Nothing Phone (4b). According to the original report, the handset had shipped around 20,000 units globally since launch, raising concerns about demand.

Evangelidis disputed that figure right away and said the Phone (4b) sold 29,537 units on its very first day, making it the best-selling device in its price segment.

Instead of retreating from global markets, Evangelidis says Nothing is reorganizing its business to prepare for its next stage of growth.

New units

According to the executive, the company is creating dedicated business units, including one focused on AI, while consolidating operations from individual countries into larger regional hubs. The goal, he says, is to improve efficiency rather than scale back the business.

That said, Nothing isn't denying that layoffs are taking place.

The company acknowledged that the restructuring has affected some employees, although Evangelidis argued that reports about the scale of the job cuts are "way overblown". But because of ongoing regulatory requirements, the company still can't tell the exact numbers out loud at this time.

Evangelidis also addressed the human side of the restructuring, saying decisions affecting employees' livelihoods are never made lightly and that Nothing is committed to supporting those impacted during the transition.

The bombshell report

The statement is a direct response to the report published by Digit, which claimed the company was preparing to exit markets across the Middle East, Japan and parts of Europe, while reducing its global headcount and cutting R&D jobs in both China and the UK.

The report also painted a challenging picture of Nothing's broader business. Although the company reportedly shipped around 2 million smartphones in 2025 and enjoyed strong momentum in India thanks to the Phone (4a) series, rising memory chip prices and weakening demand for affordable smartphones have made 2026 a much tougher year for many manufacturers.

No new CMF phones

Nothing has already confirmed that its budget-focused CMF brand will not launch a new smartphone this year and CMF recently lost one of its key executives when Himanshu Tandon stepped down. Those developments fueled speculation that the company could be entering a difficult period.

At the same time, Nothing's impressive 105% year-over-year growth in India came with an important caveat. The figure refers only to Nothing-branded smartphones and excludes CMF, which became a separate brand in 2025. While the company has clearly gained traction in one of the world's biggest smartphone markets, it still operates from a much smaller base than established rivals.

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