Haier's major layoffs: remove mainly the middle layer

Absrtact: Haier CEO Zhang recently said in a forum that 2014 will continue to lay off 10,000 people. Last year we removed 16000 people, Haier last year was 86000 people, the end of last year to become 70000 people, so removed 18%. 10,000 more people are expected to be removed this year. Zhang said Haier CEO Zhang recently said in a forum that 2014 will continue to lay off 10,000 people. "Last year we removed 16000 people, Haier last year was 86000 people, the end of last year became 70000 people, so removed 18%." 10,000 more people are expected to be removed this year. Zhang said that the main removal of the middle tier, there are some because the business intelligence after the decline in demand for personnel. Haier has been promoting the Internet transformation, in the view of Haier, layoffs are not to reduce costs but to change.





transformation needs more software development talents





"Outside to the middleman, inside to heat insulation wall". This is Zhang's brief summary of organizational structure adjustment, and the insulating wall is the middle management. According to Haier's plan, last year and this year Haier total layoffs in about 26,000 people. Layoffs in the home appliance industry is not uncommon, after Panasonic, Sony and other Japanese foreign companies in order to turn around, layoffs are one of the options to reduce the burden. But Zhang the cause of layoffs as a restructuring of the organization. Haier has been promoting the transformation in recent years, and the organizational structure has been adjusted in large scale. Haier in the management of the promotion of "people single Oneness", people are employees, simply user resources, each employee and its user resources together. But in the organizational structure, Haier wants to build inverted pyramid structure. Enterprises are generally pyramid-style organizational structure, at the bottom of the staff, above for all levels of leadership. Haier hopes that, in turn, leaders serve the staff.





for further information on the layoffs, Haier Group yesterday did not give a reply to reporters. Hong Shibin, executive director of the Marketing committee of China Household Electrical Appliance Business Association, said the restructuring was not achieved by downsizing. Haier layoff is not an intelligent manufacturing upgrade to replace the employment demand, but the change of the post value caused by organizational structure changes. For example, to promote the Internet transformation, Haier must have more software development talent, rather than traditional home appliances manufacturing and marketing personnel, this is the key to layoffs. According to its introduction, at present many home appliances enterprises are vigorously recruiting the Internet talent, to support software development, data application needs.





to promote small micro-





Today, the emergence of disruptive innovation advocates. Haier also wants to be a wreck, not a destroyed person. Haier is the leader of white power, but like television, future competitors may now have nothing to do with refrigerators. Haier's transformation is also to adapt to the Internet faster and better. But this change will inevitably break the original operating body,. Haier insiders told the South reporters, Haier in the promotion of small micro-, the original operators such as sales companies such as "small micro-company", and Haier from the affiliation link into a cooperative relationship, "but this also means greater risk, such as some positions of employees are not willing to accept." ”