Wal-Mart to Lay off 100 Employees in China
Mingpao News Nov 07, 2007
Wal-Mart plans to lay off its employees in China, possibly due to substantial increase in future labor costs. (Getty Images)
Wal-Mart Stores Inc., the world's largest U.S.-based retailer, will lay off about 100 employees in China as a part of its restructuring plan to adapt to the global procurement trend.
According to a report from the Guangzhou-based 21st Century Business Herald, Mr. Hu, a retrenched employee at Wal-Mart's Shanghai branch, received a notice of Wal-Mart on October 22 saying: "We regret to inform you that your contract with the Wal-Mart Global Purchasing Center in Shanghai will be terminated as of November 30, 2007."
Another layoff employee said the branches of Wal-Mart's Global Purchasing Centers in Shenzhen, Shanghai, Putian and Dongguan, all issued similar layoff notices on the same day.
A human resource manager from a large foreign enterprise, while commenting about the reason for this sudden employment cut, said that after the enforcement of China's new Labor Contract Law, labor costs would be significantly increased, and would also make future layoffs more difficult. Wal-Mart cutting employment now, is probably based on the consideration of reducing future labor costs.
Another thing worth mentioning is that signs indicate Wal-Mart's huge purchasing is showing a trend towards other lower cost countries and regions.
Dong Yuguo, supervisor of public relations of Wal-Mart China, said the layoffs at this time are part of the resource optimization and restructuring plan of Wal-Mart's Global Purchasing Centers, not exclusive to China.
He added, the optimization and restructure of Wal-Mart's labor force will help adapt to changes in current global procurement trend. More than 200 employees will be laid off globally. About half of them will be in China.
Dong said the layoff decision was made by Wal-Mart's Global Purchasing Centers and detailed actions would be implemented based on local labor laws.
Mingpao, however, quoted a veteran lawyer by stating Wal-Mart's layoffs have broken China's Labor Contract Law at least in terms of operating procedure.
Find thousands of Bilingual jobs at LatPro.com.
Wal-Mart plans to lay off its employees in China, possibly due to substantial increase in future labor costs. (Getty Images)
Wal-Mart Stores Inc., the world's largest U.S.-based retailer, will lay off about 100 employees in China as a part of its restructuring plan to adapt to the global procurement trend.
According to a report from the Guangzhou-based 21st Century Business Herald, Mr. Hu, a retrenched employee at Wal-Mart's Shanghai branch, received a notice of Wal-Mart on October 22 saying: "We regret to inform you that your contract with the Wal-Mart Global Purchasing Center in Shanghai will be terminated as of November 30, 2007."
Another layoff employee said the branches of Wal-Mart's Global Purchasing Centers in Shenzhen, Shanghai, Putian and Dongguan, all issued similar layoff notices on the same day.
A human resource manager from a large foreign enterprise, while commenting about the reason for this sudden employment cut, said that after the enforcement of China's new Labor Contract Law, labor costs would be significantly increased, and would also make future layoffs more difficult. Wal-Mart cutting employment now, is probably based on the consideration of reducing future labor costs.
Another thing worth mentioning is that signs indicate Wal-Mart's huge purchasing is showing a trend towards other lower cost countries and regions.
Dong Yuguo, supervisor of public relations of Wal-Mart China, said the layoffs at this time are part of the resource optimization and restructuring plan of Wal-Mart's Global Purchasing Centers, not exclusive to China.
He added, the optimization and restructure of Wal-Mart's labor force will help adapt to changes in current global procurement trend. More than 200 employees will be laid off globally. About half of them will be in China.
Dong said the layoff decision was made by Wal-Mart's Global Purchasing Centers and detailed actions would be implemented based on local labor laws.
Mingpao, however, quoted a veteran lawyer by stating Wal-Mart's layoffs have broken China's Labor Contract Law at least in terms of operating procedure.
Find thousands of Bilingual jobs at LatPro.com.
<< Home