China Unicom (CHU) has started to design its new organization structure and plans to lay off 600 employees.
In the new structure, all the staff from the former China Unicom and China Netcom will be reorganized and reassigned into new departments. The new structure will focus on the layout of the company's future network and business along with the appropriate arrangement of human resources.
Before the re-organization, China Unicom had 27 departments and China Netcom had 21 departments. Most of these departments of the two companies are overlapping now. Moreover, the 700 employees from China Netcom and the 500 employees from China Unicom lead to a surplus of staff, which has become the toughest problem for the new company to face.
In regards to this problem, China Unicom says that about half of the staff will be laid off, which means about 600 employees will lose their jobs. The company says that its final departments have not been decided. It will set more departments at the initial stage and gradually cut the redundant departments to streamline its organization structure. The final employee number in its headquarters will be about 600.