A hot potato: Part costs were rising a little too quickly at DJI because employees were artificially raising costs to take home the extra for themselves. After more than $150 million has been stolen, a number of employees are being fired and the investigation will continue with the aid of law enforcement.
During an internal probe, DJI has discovered that employees have been inflating the prices on purchases and pocketing the surplus. Estimates of losses are currently valued at $150 million according to DJI spokeswoman Hong Yongxin, making it one of the largest fraud cases in recent history present in China's tech industry.
As an employer of 14,000 people, DJI has already fired as many as 29 people relating to this incident of fraud. Law enforcement has been involved and investigations are ongoing to determine if any more employees have connections to the thefts occurring.
Chinese businesses are required to aggressively go after corruption cases following a crackdown by President Xi Jinping. If companies do not attempt to prevent corruption to the satisfaction of the Chinese government, extremely harsh penalties can be imposed. Currently holding nearly three-quarters of the consumer drone market, DJI is certain to attract unwanted attention over the matter.
In response to the situation, DJI has begun to improve its internal controls. Employees are being give new options to submit tips regarding policy violations including anonymous methods.
Going forward, DJI is going to have a rocky path ahead to crushing all of its internal problems. On the outside, the company is still in good position to sell its ever widening lineup of products. From handheld camera gimbals and small drones all the way up to enterprise-class drones that carry relatively heavy payloads, the company is showing no signs of slowing down.