Business

Chinese media firm cuts 500 workers in bid to survive coronavirus

Business

Chinese firm Xinchao Media has laid off 500 people, or just over 10per cent of its workforce, saying it needed to resort to such measures to survive the impact of the coronavirus outbreak.

FILE PHOTO: People wearing face masks stand on an elevator down to the platform inside the Xierqi subway station, in the morning after the extended Lunar New Year holiday caused by the novel coronavirus outbreak, in Beijing

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11 Feb 2020 11:01AM

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SHANGHAI: Chinese firm Xinchao Media has laid off 500 people, or just over 10per cent of its workforce, saying it needed to resort to such measures to survive the impact of the coronavirus outbreak.

The move comes even as Chinese President Xi Jinping said the government would prevent large-scale layoffs due to the virus outbreak, which has already killed more than a 1,000 people in mainland China and infected over 40,000.

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Many companies are hurting from business disruptions after local governments ordered an extension to Lunar New Year holidays and urged would-be customers to stay home to prevent the virus from spreading.

Xinchao Media, which places advertisements in elevators, announced its job cuts in a post on its official WeChat account on Monday, which carried the transcript of an internal speech given by its chief executive, Zhang Jixue.

He said the company still had nearly 1 billion yuan (US$143 million) in its coffers, but forecast that it would likely only be able to tide over for 6-7 months if they had no income.

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