Nothing reportedly plans major global retreat as smartphone sales struggle

Carl Pei left OnePlus in 2020 to start Nothing and take another swing at disrupting the smartphone industry. The company was off to a decent start with the launch of its first earbuds, eventually expanding into smartphones, which, for the most part, were well-received by fans and critics alike. Six years later, the two companies he helped create find themselves in an eerily similar position: retreating from markets around the world as the smartphone business becomes increasingly unforgiving due to skyrocketing memory prices.

According to an exclusive report from Digit, Nothing is preparing to exit at least 12 markets, including Japan, the Middle East and parts of Europe. The company is also reportedly planning substantial layoffs, with its global workforce expected to shrink by around 40%. Nothing's R&D operations could take an especially large hit. Digit claims roughly half of the company's China-based R&D workforce will be laid off, alongside 30-40% of its London team.

For Nothing, disappointing sales outside India reportedly contributed to the decision. The Nothing Phone (4b) has reportedly shipped only about 20,000 units globally since launch, while combined Phone (4a) and Phone (4a) Pro shipments total roughly 150,000 units. Unsurprisingly, India is the exception. Nothing has courted the lucrative market more aggressively than perhaps any other, and that attention appears to have paid off. Counterpoint Research recently identified Nothing as India's fastest-growing smartphone brand in Q2 2026, with shipments increasing 105% year-over-year. That figure doesn't include CMF, which was spun off into a separate entity last year.

CMF isn't having an easy time either. The company has no new smartphone planned for 2026, with Nothing co-founder Akis Evangelidis blaming rising memory prices for making a worthwhile successor economically unviable. That is particularly problematic for a brand built around aggressively priced hardware, especially as India's sub-Rs 20,000 smartphone segment reportedly contracted by 45% year-over-year in Q2 2026. At least one device originally destined for CMF has reportedly been moved to the main Nothing lineup, where a higher price should be easier to justify. To make matters worse, CMF India head Himanshu Tandon has also stepped down, leaving the fledgling brand without a new smartphone or the executive who helped establish it in one of its most important markets.

The retreat comes at an interesting time for Carl Pei's former company. OnePlus, which Pei co-founded with Pete Lau in 2013, recently confirmed it would stop launching new products in Europe and North America. Separate reports have suggested the company could eventually leave India as well, although OnePlus has denied those claims and maintains that its Indian operations continue as usual. Pei has had no involvement with OnePlus since leaving the company in 2020, so the two companies' respective retreats aren't directly connected. Nevertheless, the parallels are difficult to ignore.

As always, the report should be treated as unconfirmed until more evidence emerges. That said, even if it is accurate, an official confirmation from Nothing is unlikely. Companies rarely announce their own decline, and any response will probably take the form of a denial or a carefully worded statement reaffirming its commitment to key markets. Either way, the coming months should make it clear whether Nothing is indeed scaling back its global ambitions.