Netcom Steps Up Internal Restructuring
Sohu IT, 1/02/08
China Netcom Group is stepping up efforts to separate core and non-core business and increase operational efficiency. Prior to the New Year 1,000 employees of Beijing Netcom's financial and regional marketing departments were moved out of the building housing the company's non-core business. Meanwhile, many of Netcom's subsidiaries are cutting staff.
In November 2007, China Netcom issued a statement saying that the Netcom Group was implementing a restructuring, with auxiliary business subsidiaries to possibly be sold off. Beijing Netcom subsidiaries own various properties in Beijing which are leased back to the company.
Netcom's spinning off of non-core business has lagged behind China Telecom (NYSE: CHA; 0728.HK). Prior to China Telecom's listing, the China Telecom Group split off its non-core assets and established provincial branches overseen by the Group headquarters. At the end of 2007, China Telecom merged assets of the Shanghai, Guangdong, Fujian, Hainan, Hubei and Zhejiang branches and listed them in Hong Kong as China Communications Services Corp (0552.HK).
Keywords: China Netcom CN 0906.HK corporate restructuring China Telecom CHA 0728.HK spin-off telecom
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