China's Major Appliance Company Haixin Faces Rumors of 10,000 Job Cuts

[Asia Economy Beijing=Special Correspondent Park Sun-mi] Chinese major home appliance company Hisense has announced that it will lay off employees who fail to meet performance standards, citing difficulties caused by the COVID-19 pandemic.

According to the Hong Kong South China Morning Post (SCMP) on the 14th, Hisense recently stated in an official announcement that the company is struggling due to the spread of COVID-19.

Hisense said, "The home appliance markets in China and abroad are experiencing a significant downturn due to the spread of COVID-19," adding, "Since overseas sales account for 40% of our total revenue, the situation is especially difficult." The company also stated, "Like many Chinese companies, we are striving to protect tens of thousands of excellent workers, but due to the business impact caused by COVID-19, we have decided to lay off employees who fail to meet performance standards."

This announcement from Hisense came amid rumors that the company would reduce its workforce by 10,000 employees, equivalent to 12.5% of its total staff. While Hisense described the rumored figure of 10,000 layoffs as "inaccurate," it did not disclose the exact number of workers who will be let go.

Another major home appliance company, Haier, is also reportedly facing management difficulties due to the impact of COVID-19. Although it has not announced any layoff plans yet, it is said to have informed executives of salary cuts to minimize the impact. Haier has not yet responded to these reports from local Chinese media.

SCMP pointed out that the official unemployment rates released monthly and quarterly by the Chinese government only reflect part of the labor market and fail to show the overall employment crisis in the industry caused by COVID-19. Various estimates suggest that the temporary number of unemployed people in China due to COVID-19 could range from tens of millions to 250 million.

China is scheduled to announce the first quarter economic growth rate along with the March unemployment rate on the 17th. The previously announced February unemployment rate was 6.2%, marking a record high.

This content was produced with the assistance of AI translation services.