Many Chinese listed companies have cut tens of thousands of jobs to lower operating costs. Among them, HNA Technology has the highest reduction in employees.
HNA Technology was known for its purchase of U.S. electronic distributor Ingram Micro Inc.
According to Newtalk, HNA Technology laid off 99.82% of its total employees in just one year.
Its 2021 annual report shows that the number of employees in the parent company was 66. They include eight production personnel, five sales personnel, 18 financial personnel, 29 administrative personnel, and six management personnel, while the principal subsidiaries had 0 employees.
Meanwhile, in its 2020 annual report, the parent company had 67 employees, and the principal subsidiaries had 36,925 employees. By calculation, HNA Technology sharply cut its total number of employees from 36,992 to only 66, and the major reduction is from its major subsidiaries.
Relevant employees said that the subsidiaries mentioned in the 2020 annual report mainly refer to Ingram Micro. Since HNA Technology sold the U.S.-based IT supply chain firm at the end of 2020, the number of employees in this subsidiary was 0.
HNA Technology acquired Ingram Micro at the end of 2016 for nearly 6 billion dollars. From 2017 to 2019, 90% of HNA Technology’s revenue came from Ingram Micro. However, Ingram Micro’s dividend amount was insufficient to cover the repayment of the principal and interest of the M&A loan, so HNA Technology finally sold the U.S. company in December 2020 for 1.95 billion dollars.
Although the sale of Ingram Micro to Platinum Equity helped ease financial pressure for HNA Technology, it also caused the company to lose its primary business. The main assets were only cash.
According to Reuters, some of China’s biggest tech companies, including Alibaba and Tencent, are also preparing to lay off thousands of employees in 2022 as the country continues its regulatory crackdown.