Employee Fraud To Cost DJI $150 Million

DJI, the largest manufacturer of consumer drones, has revealed that it has to take a hit of $150 million due to employee fraud. Some employees were inflating the cost of parts for their personal gain and these incidents of suspected corruption have resulted in a financial hit of around $150 million in 2018.

DJI announced last week that it’s investigating “a number of serious cases of corruption” at the company that have caused losses of almost $150 million for 2018. This is said to be one of the largest cases of corruption involving a Chinese company.

It has now provided additional details about the matter. While the company did not incur a full year loss in 2018, it did have to take this hit. DJI said that the case involved some employees who inflated the costs of parts. The privately-held company did not provide any further information

The cases of corruption were discovered during an overhaul of management procedures at DJI. It found employees in several parts of the supply chain had resorted to corrupt behavior which causes prices to raise on an average of 20 percent. Reports have also suggested that DJI has fired 45 individuals most of whom worked in procurement as well as the research and development departments.

Adnan Farooqui
Categories: Gadgets
Tags: dji