Listed Companies Become The Hardest Hit Areas For Layoffs

Household appliances,

According to the latest statistics, 345 of the more than 1000 listed companies that have published annual reports have totally laid off 176 thousand and 500 people. Home appliances, textiles, automobiles and other industries have become the hardest hit areas for layoffs.

Over the past decade, the mode of export driven economic growth has been unsustainable. From scale oriented to brand growth and technological innovation, the pformation of domestic enterprises is imminent.

Active layoffs, passive attrition, and changes in personnel caused by mergers and acquisitions have resulted in new changes in the number of employees in listed companies.

Among them, the largest reduction in personnel was electrical appliances in the United States, with a total reduction of 32179 employees. YOUNGOR, Southern Airlines and CITIC Securities were not immune to the fact that the number of employees was reduced by more than 10000. Star enterprise BYD's "human sea tactics" also became a dead end, laying off 5693 people. Besides, Haitong Securities laid off 1552 people. Hanwang Technology staff reduced from 1570 to 659, and the reduction was 58%.

"As a lagging indicator of economic performance, last year's layoffs reflected more difficulties in macroeconomic and business operations of the previous year and last year."

Li Jianfeng, chief strategist of financial securities, said in an interview that "the unemployment rate will have a lagging effect on the economy. On the other hand, it predicts that this year's economic situation is not optimistic, especially in the first quarter."

A few days ago, the National Bureau of statistics released data showing that the first 2 months of industrial enterprises' profits appeared for the first time in 27 months, indicating that enterprises in the first quarter of this year were negative.

Yang Chang, a researcher at the development and research center of Shanghai Municipal People's government, has recently studied many enterprises. He told reporters that the A share market was dominated by manufacturing industry. The layoffs reflected the low degree of intelligence in some manufacturing sectors in China. At the same time, it also showed that listed companies are carrying out some orderly planning and cost control, and are making efforts to improve their management and production efficiency.

From the perspective of subdivision industry, household appliances, foreign trade, automobiles and other industries have become the hardest hit areas for layoffs.

Taking household appliance enterprises as an example, widespread layoffs reflect unsustainable patterns.

In addition to such a big Mac, small household electrical appliance enterprises, IPU and Swan also laid off 531 and 359 people last year.

Insiders told reporters frankly that household appliances went to the countryside for several years, but the appliance industry was in the industry.

For foreign trade enterprises, the reduction of personnel is mainly due to the decline in orders.

As early as 2008, the textile and garment enterprises in Thailand and other neighboring countries broke out large-scale layoffs. In contrast, domestic textile and garment enterprises had similar reasons for layoffs.

Since last year, China's exports to the traditional market began to decline. In the first two months of this year, China's exports grew by 6.9% over the same period last year, far below the 21.3% growth of the same period last year.

However, relying solely on the current domestic consumer market, it is unable to digest the "made in China" that has formed world-class capacity.

YOUNGOR, which laid off more than 40% of its workforce, dropped nearly 30% of its net profit in 2011.

Layoffs in the auto industry also indicate that the golden age of rapid growth in the automotive industry is over.

At the most brilliant time of BYD, Wang Chuanfu, chairman of the board of directors, proudly declared that in 2025, the 300 thousand largest labor force and a large number of engineers in the world would be capital.

Today, the auto industry is facing a slowdown in demand growth and has to cut costs and reduce production capacity through layoffs.

BYD had to reluctantly abandon its important capital.

The securities companies listed as "relying on heaven" are also eye-catching. Because of the A share market downturn and industry competition intensifying, Haitong Securities laid off 1552 people last year, ranking first among securities companies.

Coincidentally, CITIC Securities also experienced layoffs last year.

Insiders of CITIC Securities profit center judge that Haitong Securities's layoffs are only a case.

Domestic and foreign investment banks are slightly different in layoffs. The purpose of layoffs in foreign investment banks refers to the cost savings, usually by team or department layoffs; and the core group of domestic brokerages will not face large-scale layoffs, such as sponsors and researchers.

From the point of view of manpower structure, Haitong Securities headquarters's core business and functional departments account for a relatively low proportion.

To sum up, there are four main reasons for the current "layoff storm": first, the industrial reasons, such as the regulation of the real estate industry in the household electrical appliance industry; two, the decline in orders, resulting in the passive control costs of enterprises; three, the upgrading of products, the elimination of technology and the improvement of the ability to replace labor force; and four, the rise of human capital to the employment structure of enterprises.

In fact, enterprises may lay off workers in the depressed market conditions, and the information of listed companies is more pparent.

"The old driving force is weakening, the new driving force has not yet been mature, and enterprises are expected to be more difficult to be optimistic, so there is no motivation for expansion.

The real economy is slowing down. If we do not change this situation in time, there will continue to be layoffs. "

Zheng Lei, CO chairman of the International Asset Management Association, admitted to reporters.

To alleviate these pressures, no matter the industry or experts and scholars agree that only rely on accelerating pformation.

The pformation of China's economy is the trend of the times, to compensate for the negative impact of rising labor costs, only to improve labor productivity.

However, Yang Zhirong, an associate research fellow, believes that there are four prerequisites for improving labor productivity: first, industrial upgrading and technological progress will take time; two, higher quality labor supply depends on vocational education and training system; three, improvement of the market system and government service environment; four is the improvement of the efficiency of financial resources allocation, but the current financial system dominated by state-owned banks has restrained the more effective allocation of financial resources.

Yang Zhirong is worried that in the background of economic market reform hesitates, the above four prerequisites are difficult to meet in the short term, and the labor productivity is expected to be very limited. The barriers to increase in the cost of Chinese enterprises can hardly be crossed at the same time. The impact of changes in the human market on enterprises and economic development is difficult to offset in the short term.