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Last updated at: (Beijing Time) Friday, November 29, 2002

China Railcom to Cut 40,000 Staff in 4 Years

A senior officer with China Railcom told yesterday that his company would soon effect a large-scale reduction of staff to an annual 10,000 head within 4 years.


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A senior officer with China Railcom told yesterday that his company would soon effect a large-scale reduction of staff to an annual 10,000 head within 4 years.

China Railcom currently has an employment of around 70,000. Redundant personnel and low productivity have always been a plaguing factor restricting its development. According to statistics, last year the company reaped a profit of 3.3mn yuan, the productivity standing at 62,500 yua per head, with a modest per-capita profit of 47.82 yuan. By contrast, in the same year the productivity of China Telecom, China Mobile and China Unicom reached a per-head amount of 518,000 yuan, 1,556,000 yuan and 742,000 yuan, respectively.

As a matter of fact, the plan to tackle the problem of redundant staff has early been envisaged, with an ultimate employment of 30,000, yet is difficult to put into practice due to the company's complicated innate structure. Besides, the company underwent a major personnel transfer not long ago, with discreet Qiao Jinzhou taking the post as president. Thereby, analysis believed the company wouldn't conduct staff reduction shortly.

Analysis also held China Railcom, as a telecomm operator, had no advantages over other telecom operators in terms of new technology or business modes. At present the company holds a 1.1-percent share on the domestic telecom market. Thus, staff reduction has been designed to help the company out with a light pack.

The senior officer also indicated that by planned staff reduction would be meant start of an all-round reform to be carried out, redundant personnel are to be detached instead of simply turning them into layoffs.

By PD Online Staff Zhu Lizhen


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