Chinese telecom equipment maker ZTE begins layoffs

  • IANS
  • Stock Market News
Chinese telecom equipment maker ZTE begins layoffs
Credit: © Reuters.

Beijing, Feb 21 (IANS) Chinese telecom equipment provider ZTE (HK: 0763 ) has reportedly started layoffs across departments, including wireless research institutes, terminals and other verticals.

According to a report in China Star Market, several employees were notified about their layoffs before the end of February.

"Some departments of the Wireless Research Institute are laying off 10-20 per cent of their staff. In addition, the terminal business department is also the focus of the layoffs," the report said, quoting a ZTE employee.

The job cuts will also reportedly impact senior employees who have worked for the company for more than 10 years.

"A software development engineer who has been in ZTE for more than 10 years is also on the list this time. The layoffs ratio in my department has exceeded 10 per cent and more layoffs will continue later,a another employee was quoted as saying.

According to the report, the company took the decision to sack employees due to over-recruitment last year.

A ZTE spokesperson said that this is a "normal personnel adjustment and reshuffle" like every year and that there has been no obvious change this year.

ZTE reported an operating income of 92.559 billion yuan ($13.5 billion) in the first three quarters of last year, up 10.42 per cent year-on-year.

The net profit was 6.82 billion yuan, up 16.52 per cent year-on-year.

On February 17, ZTE announced the plan to reduce the holdings of the chairman of the board of supervisors.

--IANS

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