China Telecom to Lay off 200,000, Preparing for Overseas ListingChina Telecom, the flagship information colossal, is planning to lay off 200,000 of its total 530,000 employees nationwide to get in form for listing overseas.According to senior officials from China Telecom, only 11 of the company's 31 branches are now profitable. The layoff programme is expected to slash operation costs of the company and promote its service efficiency. The huge layoff programme is expected to be completed in five years. This year, the company will discharge 30,000 to 40,000 jobs, and the unskilled workers will be the first group to lose jobs. The company aims for an eventual workforce of 250,000 to 330,000, as the layoff programe comes to an end. According to analysts, it is imperative for China Telecom to cut its swollen workforce, since its operation efficiency is calculated at only half of its international counterparts. Chang Xiaobing, Vice-president of China Telecom, revealed in an recent interview with the London-based Financial Times that the company has no plan to get listed abroad this year, instead the company is seeking partners that can give it financial support. Many experts have anticipated that China Telecom will get list in Hong Kong and the US at the beginning of next year. The company must take some actions to enhance its competitiveness before the listing. Togethter with the layoff programme, the company recently announced its proposal to raise the price of local phone call by at least 66 per cent. At the same time, the company is also trying to gain a licence for mobile communication services from the Government. These key reforms initiated by the company fully demonstrated the company's determination and confidence to raise more capital after listing. [Source: chinadaily.com.cn] |
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