6,000,000 pending layoffs in China

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China plans to cut the number of state employees by up to 6 million over the next few years in an effort to reduce overcapacity in the industry and cut pollution.
The news comes from two sources that are linked to the Chinese leadership, but who insists on anonymity because they were not authorized to talk to media.
The cuts will take place in what is referred to as “zombie companies” and in sectors where there is substantial overcapacity. This will be the biggest restructuring in nearly two decades. Between 2008 and 2013, a review of state companies lead to 28 million jobs being cut. This cost the government 78 billion yuan in payments to a fund that was to help people on their feet again. This amount corresponds to over 100 billion NOK by the rates of today.
The Minister of Industry gave no immediate reply when he was asked for a comment. The Minister with responsibility for Social Affairs said China expects to cut the number of  people employed in the coal and steel industry with 1.8 million, but specified no timeframe for this.


Source: NTB scanpix / Norway Today