CEC Telecom Lays Off Quarter of Employees
21st Century Business Herald, 1/15/10
An employee who recently left Chinese mobile phone manufacturer CEC Telecom (CECT) revealed that starting around last September, the company began undertaking a series of massive layoffs that the ex-employee estimated has downsized more than 100 employees to date. A source close to senior CECT management revealed that the company plans to sell off its mobile phone unit, and is in the process of looking for a buyer.
CECT chairman Wu Zhiyang confirmed that the company had laid off employees - more than 100 of its former 400+ employees. Wu denied that CECT was seeking to sell its mobile division, though he did say that CECT sales were down 30% to 40% in H2 2009 from the previous year.
Monthly mobile handset orders for CECT are about 150,000 units, Wu said, of which approximately 50,000 are CECT-branded handsets and 80,000 handsets from the company's high-end VEVA line. In the future, Wu says, CECT will move from being exclusively a mobile phone manufacturer to being an overall mobile channel service company. CECT's parent company Qiao Xing Mobile Communication (NYSE: QXM) will also be split off from its parent company, Qiao Xing Universal (Nasdaq: XING).
Keywords: spin-off sales volume Wu Zhiyang handset wireless CECT QXM XING Qiao Xing Mobile Communication HR
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