ZTE Responds to Rumor that Big Layoffs Coming in 2013, Kind of Denies It

In response to a report quoting anonymous sources in Investment Bulletin suggesting that ZTE would lay off as much as twenty percent of its work force in the coming year, an anonymous ZTE representative told Beijing's Capital Week (via the Global Times):

The company is undergoing a labor optimization. Currently, there has been no mass layoff and the peak time to cut the labor has passed.

On the face of it, that seems like a denial, but it's hard to be sure. The fact that there hasn't yet been a mass layoff doesn't mean there won't be, and the Investment Bulletin report seems to suggest the layoffs are being staggered, with a certain percentage of contracts not being extended as they come up for renewal each month. Moreover, it is strange that an anonymous ZTE representative would be making this statement rather than an official company representative.

Rather than speculate further, we have contacted ZTE about the layoff rumors and will update this post with the company's clarifications if we hear back.

Rumors about big layoffs at ZTE have been bubbling for some time now, and here at Tech in Asia we have heard from some former ZTE employees over the past year who claim they were laid off, but we have never been able to corroborate their claims. However, the company's half-year financial reports reveal that between the end of 2011 and June 2012, ZTE cut 2,806 employees from the payroll. The company has not yet released its report for the second half of 2012, and its not clear whether those cuts continued through the second half of the year or whether they'll continue in 2013.

What is clear, though, is that ZTE's "labor optimization" will probably have to involve some form of cutbacks. The company had an absolutely abysmal 2012, posting $400 million in losses, and no company can bleed like that for long without making some serious changes. Whether that means layoffs or some other adjustments remains to be seen, but the company will have to make major changes in 2013 if it wants to keep its place among the world's top smartphone makers.

The post ZTE Responds to Rumor that Big Layoffs Coming in 2013, Kind of Denies It appeared first on Tech in Asia.

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • Philippine economic growth slows to three-year low
    Philippine economic growth slows to three-year low

    Philippine economic growth in the first quarter slowed to a three-year low of 5.2 percent, well below forecasts, due to lethargic government spending and weak exports, officials said Thursday. "While growth in the private sector remains robust, the slower than programmed pace of public spending, particularly the decline in public construction, has slowed down the overall growth of the economy," Economic Planning Secretary Arsenio Balisacan told reporters. "Exports were the other source of the …

  • EM ASIA FX-Won near 2-month low on plunging yen, peso pares gains as growth weakens

    * S.Korea intervention spotted, won hits 7-year high vs yen * Philippine peso briefly weaker after Q1 growth disappoints (Adds text, updates prices) By Jongwoo Cheon SEOUL, May 28 (Reuters) - South Korea's ... …

  • Britain's tied visa rules fuel abuse of live-in maids, nannies

    By Katie Nguyen LONDON (Thomson Reuters Foundation) - When Susi, a single mother from the Philippines, left for a job in Qatar, she convinced herself it was a sacrifice worth making for her children at home. For more than a year, Susi's sacrifice involved waking before dawn and working past midnight, cooking, cleaning and looking after a Qatari family. Conditions deteriorated when Susi was brought to Britain by her boss. …

  • SE Asia Stocks - Philippines at four-month low after Q1 GDP miss

    BANGKOK, May 28 (Reuters) - Philippine shares hit a more than four-month low on Thursday after economic growth in the first quarter was slower than expected, while Thai stocks retreated after disappointing ... …

  • Philippine economic growth slows to 5.2 percent in 1Q

    Sluggish government spending slowed Philippine economic growth in the first quarter of this year, officials said Thursday. The country's gross domestic product grew by 5.2 percent in the first quarter, ... …

  • PSE to sell Makati and Ortigas offices
    PSE to sell Makati and Ortigas offices

    Set to move to a unified headquarters in Bonifacio Global City in 2016, the Philippine Stock Exchange (PSE) has issued plans to sell their offices in Makati and Ortigas. PSE President Hans Sicat issued that PSE means to sell the offices, but that they may also opt to rent them out instead. …

  • ‘Inland areas could be exposed to tsunami-like waves’
    ‘Inland areas could be exposed to tsunami-like waves’

    While strong earthquakes cause tsunamis in coastal areas, the Philippine Institute of Volcanology and Seismology (Phivolcs) warned that inland areas could also be exposed to tsunami-like waves, or seiche, if located near or around bodies of water. In a recent earthquake awareness seminar in Muntinlupa, Phivolcs supervising science research specialist Joan Salcedo explained that a seiche is a large wave similar to a tsunami, triggered by strong ground shaking from an earthquake or volcanic …

  • China gives ‘gentle reminder’ to Phl, warns small nations
    China gives ‘gentle reminder’ to Phl, warns small nations

    China gave the Philippines a “gentle reminder” last Tuesday that Beijing will not bully small countries but warned these nations not to make trouble willfully and endlessly. “Here is a gentle reminder to the Philippines: China will not bully small countries, meanwhile, small countries shall not make trouble willfully and endlessly. The Chinese Foreign Ministry also said that China would continue to build other civilian facilities on relevant maritime features in the disputed Spratly Islands …


Should Aquino be held accountable over the Mamasapano operations?

Poll Choice Options