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Layoffs come back to haunt Chinese textile sector
18 Apr '12
1 min read
The latest statistics reveal that among more than 1,000 listed companies that have published annual reports, 345 companies have laid-off around 176,500 staff in total in 2011.
Workers and staff from the household appliances, textiles and automotive industries are the hardest hit due to the layoffs.
The Chinese textile sector has been one of the hardest hit by the specter of lay-offs as textile and garment exports to traditional overseas began tapering off mid-2011 onwards.
Chinese exports from the sector rose just 6.9 percent in the first two months of this year, far lower than a 21.3 percent growth over the same period last year.
Garment maker -Younger has reduced more than 40 percent workers, its net profit fell nearly 30 percent in 2011. One of the reasons for massive layoffs is decline in orders.
The model of export-led economic growth in the past ten years has been unsustainable, so it is imperative that enterprises switch from volume-oriented growth to establishing brands and adopting technological innovation, advice experts.
Workers and staff from the household appliances, textiles and automotive industries are the hardest hit due to the layoffs.
The Chinese textile sector has been one of the hardest hit by the specter of lay-offs as textile and garment exports to traditional overseas began tapering off mid-2011 onwards.
Chinese exports from the sector rose just 6.9 percent in the first two months of this year, far lower than a 21.3 percent growth over the same period last year.
Garment maker -Younger has reduced more than 40 percent workers, its net profit fell nearly 30 percent in 2011. One of the reasons for massive layoffs is decline in orders.
The model of export-led economic growth in the past ten years has been unsustainable, so it is imperative that enterprises switch from volume-oriented growth to establishing brands and adopting technological innovation, advice experts.
Fibre2fashion News Desk - China
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