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15 Jan 2024

China: Sudden layoffs & closures ahead of Lunar New Year leads to protests & migrant workers returning home early; incl. cos responses & non-responses

In November and December, articles by Radio Free Asia, China Labor Bulletin, and Channel News Asia reported on the impact of layoffs on workers in China ahead of the Lunar New Year, including the impact on internal migrant workers in the country. Radio Free Asia links the company closures to the Government’s expanding control of the economy which has allegedly left businesses ‘unable to make long-term plans’.

Radio Free Asia argues the struggling economy has left companies unable to pay wages or forced to shut down and layoff staff. This has led to worker protests and disputes across the country. The article alleges a number of companies are suspending or shifting production or cutting jobs:

  • Xinya Steel Plant allegedly announced it would suspend production for over three months, with employees receiving 50% of their salary during the holiday period.
  • Automaker NIO would cut its workforce by 10%.
  • TCL Technology’s Moxing Semiconductor, OPPO’s Zheku Technology, and Geely’s Star Meizu would close (in response to the Resource Centre's request for comment, OPPO said it has 'made proper arrangements and provided above-average compensation for all related employees').
  • ByteDance is looking to sell its gaming unit Moonton Technology and plans to cut jobs at its virtual reality arm Pico (in response to the Resource Centre’s request for comment, however, ByteDance said Moonton has no restructuring plans, and it is has worked closely with workers impacted by restructuring at PICO).
  • The article alleges Walmart is moving its procurement centre to Vietnam (in response the Resource Centre’s request for comment, however, Walmart said it was not moving procurement from China to Vietnam).

Channel News Asia similarly reports on staff layoffs and workers asked to take extended periods of leave as firms struggle, including due to a slump in the real estate market.

The article alleges:

  • Gold World Innovation Aluminium has told staff they will receive 80% of their salary until April. The company did not respond to the journalist’s request for comment.
  • Yaxin Iron and Steel Group announced a suspension in production until after the Lunar New Year. The company did not respond to journalist’s request for comment.
  • Simatelex, Shenli (part of Gealex Toys Manufacturing), Forward, and Good Printing have closed their Shenzhen factories, allegedly ‘hitting thousands of jobs’. Simatelex was contacted by China Labor Bulletin for comment.

In January 2024, the Business and Human Rights Resource Centre invited ByteDance, Gealex Toys Manufacturing, Meizu, Moxing Semiconductor (part of TCL Technology), NIO, OPPO, Xinya Steel Plant, and Walmart to respond to the articles’ findings that workers who have been laid of are experiencing economic hardship, and to outline how the companies will ensure employees who will be laid off will be protected and will not experience financial hardship, such as through adequate compensation or relocation packages. ByteDance, OPPO, and Walmart's responses can be read in full below. Gealex Toys Manufacturing, Meizu, Moxing Semiconductor (part of TCL Technology), NIO, and Xinya Steel Plant did not respond to the Resource Centre’s request for comment.

[Due to company closures, the Resource Centre was not able to contact Good Printing and Forward to invite a response to the allegations; if a response is received in the future this page will be updated accordingly].

Company Responses

Oppo Electronics View Response
Xinya Steel Plant

No Response

NIO

No Response

TCL Technology

No Response

Meizu

No Response

Gealex Toys Manufacturing

No Response

ByteDance View Response
Walmart View Response

Timeline