Layoff strategies during business transformation

In recent years, as China has opened up and its reforms deepened, the nation has stepped into a period of economic transformation and industrial restructuring, from a high-speed and extensive economic development mode to one that is under the “new normal”, and driven by gradual reform and innovation.

At the same time, more enterprises intend to adopt the strategy of industrial transfer, due to China’s declining competitive edge in industry, with the aim of seeking new growth. A total transformation is expected to take place in long-term business direction, operational models and resource allocation for the purpose of enhancing capacity and sharpening competitive advantages.

Real estate companies are facing the same transformation problems as those in other sectors. During the process, some may choose to retain their existing business operations and implement diversification strategies, while others may completely quit their industry and enter new sectors. Companies choosing to drop the original business unit and adjust organizational structure are bound to face serious problems with staffing and layoffs.

Pan Jiaying is an associate with City Development Law Firm