The strongest layoffs hit a number of LED companies involved

[LED] since 2015, China's economic growth, market volatility intensified. In such a big environment, set off a new wave of layoffs worldwide, many of the world's top 500 enterprises have to carry out a global scale layoffs, HP, ConocoPhillips, Bloomberg, Standard Chartered bank...... Have laid out their own downsizing plan, it can be said layoffs across all walks of life, of course, LED industry has not been spared.

Layoffs announced a number of enterprises

In the second half, LED industry quietly set off a wave of small-scale layoffs tide. At the end of 8, the industry came to the relevant departments for the abolition of Lite, affected employees up to hundreds of people, but the CEO Chen Guangzhong denied, that is human adjustment, put the focus to the new blue ocean, just LED lighting application department, as well as indoor lighting brands, both add up to 120 people, most of the staff transferred to the Department of photoelectric people, rather than the preferential treatment.

Meanwhile, in September 1st reported that the former Apple sapphire supplier GTAT intends to lay off the company, the number of employees laid off the plan accounted for 40% of the total number of employees. However, as early as last October, GTAT filed for bankruptcy has been laid off nearly 1000 employees, in addition to its close cooperation with apple mesa Arizona sapphire manufacturing factory, the factory workers reached 727.

In addition, in September 14th the news that the Department of Taiwan LED chip manufacturers EPISTAR in September 17th laid off 65 employees; 17, there is news that the crystal electric Hsinchu plant is expected in three batches laid off 76 employees, in addition, crystal electric group canyuan photoelectric Longtan factory and Ping Zhen factory, a total of 39 people laid off simultaneously. A total of the total wave crystal electric group laid off 180 people, the total number of employees is about 3%.

Behind the layoffs

Insiders said that behind the layoffs in the increasingly competitive market situation, the performance of a serious challenge, layoffs can be an effective way to reduce costs immediately, so many companies are using.

But for this argument, the main side of the crystal electric Zhang seems to be not quite agree with. He said, crystal electric after several mergers, to respond quickly to changes in production and customer demand, to small-scale layoffs, but not layoffs to reduce costs, improve efficiency but rather focus on the operation of the electric crystal.

According to the crystal electric announced earnings information, this year the second quarter revenue of about 6 billion 770 million yuan (NT below, equivalent to approximately RMB 1 billion 330 million yuan), quarter by 2%, the annual reduction of 18% business losses of 323 million yuan (equivalent to approximately RMB 63 million 440 thousand Yuan Yuan), turn to industry, since the second quarter of 2014 in the 5 quarter for the first time after tax loss. Accumulated 8 months before the company's total revenue of about $17 billion 446 million (equivalent to about RMB 3 billion 426 million yuan), an annual decrease of 11.57%.

Although the second quarter earnings performance is quite weak, but the crystal is still confident next year that it still has a competitive advantage, next year will be better than this year.

According to foreign media reports, GTAT round of layoffs in order to be able to successfully complete the reorganization under the protection of the eleventh chapter of the U.S. bankruptcy law, to further reduce the company's fiscal expenditure. GTAT spokesman told the media that the layoffs will help GTAT in the next year to save nearly $20 million of funds. According to GTAT bondholders estimated that the reorganization of the funds required at least $95 million. By then, the company will return to the field of solar and industrial equipment.

Need to explain is that although GT has filed for bankruptcy, and the company's stock is from the NASDAQ trading center "off the shelf", but the daily operation continues, is no longer engaged in the production of sapphire business.

Different voices about layoffs

In the global economic turmoil intensified today, almost every two days, we will see some corporate layoffs, according to statistics, this year the world top 500 enterprises, 115 for layoffs, which the United States up to 62, has become a disaster area". In the face of such a cold economy, layoffs seem to be the most direct way to reduce costs. However, for layoffs, different people do have different attitudes.

In the face of declining performance and increasingly fierce competition in the market, layoffs really play an immediate effect on the burden, but also by the majority of enterprises. In fact, for many companies, layoffs are forced behavior, because the company can not take care of so many employees, layoffs can only reduce costs, save the viability. Some people think that entrepreneurs should always maintain a sense of urgency, and the need to keep in mind is that: the enterprise at any time to survive is the first, leaving the survival of development, are talking about.

There have been comments that the global economic downturn in the environment, for businesses, layoffs may be to reduce costs through the winter of a choice, but the treatment is not good, but may lead to endless crisis. Enterprises, employees will leave the trauma of both. Some investors have admitted that enterprises in the face of a lot of pressure, we should give priority to the interests of employees and social interests, to deal with the crisis should bear more social responsibility, rather than pure money or profit.

In such a situation, if you are a business operator, and what choice? (text / China LED network Nicole)

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