DJI Uncovers Employee Fraud, May Cost The Company $ 150 Million
DJI, a drone manufacturing company recently uncovered an employee fraud that could very well have cost the organization $150 Million. The company released a statement that said that DJI holds their employees to strict ethical standards and takes any violation of their code of conduct very seriously.
Statement By DJI
During a recent investigation, DJI found out that some employees inflated the cost of parts and materials for certain products. They, according to DJI, pocketed the profits themselves. The company estimates the damages to be around RMB 1 billion which is around $150 Million. DJI, to address this issue, dismissed a number of employees who violated company policies. Law enforcement officials were also contacted to report the fraud. The company in their statement also said that they continue to investigate the situation. They are cooperating fully with law enforcement’s own investigation.
The drone manufacturer, who made a mark in CES with their range of new products just a few weeks back, also said that such actions do not represent the company. The statement further said that the 14,000 employees working for the company work hard every day to serve customers and develop cutting-edge technologies. DJI has become one of the biggest players in the drone market. Forbes recently named the company’s CEO Frank Wang the first “drone billionaire”.
DJI is taking steps to strengthen internal controls after the incident. They have established new channels for employees to submit confidential reports. The reports relating to any violations of the company’s workplace conduct policies will be completely anonymous.
Also Read: DJI Announces A $650 Smart Controller At CES
The company has in recent years faced various issues including different drone flying regulations in different countries and battery problems in their drones. Their latest product, a Smart Remote Controller With Built-In Display was widely appreciated in CES. However, DJI said in their statement that despite of the heavy losses, the company did not incur a full year loss in 2018.