Gionee has notified employees at the Dongguan factory that job cuts are coming soon, at least according to the documents provided by Sina Technology. The company promised that the fired employees will be compensated, as per their contracts, though it seems like quite a few people will be fired. According to the report, only the employees under special conditions, like pregnant women, breastfeeding women, and so on, will be able to keep their jobs for a while longer, even though they won’t be working, technically.
Now, it seems like Gionee has been having some issues with suppliers for a while now, as some info surfaced a while back, claiming that the company has been involved in litigation with various suppliers in Shenzhen and Shanghai. All of that affected the company, it seems, as some of their shares got frozen in the process. Company’s CEO, Lirong Liu, said that news outlets are over-exaggerating Gionee’s problems, though he did admit that the company has been having financial issues lately due to ‘excessive expenses’ in 2016 and 2017. Mr. Lirong did say that he has a plan to resolve Gionee’s problems though, a solution which would include new investors and partners, and also selling fixed assets in order for the company to pay its debts and get some additional financial support for the future. As a result of all this, Gionee is planning to restructure its business, it seems, and job cuts in the Dongguan factory seem to be a part of that.
Truth be said, it is hard to project how serious Gionee’s problems are at this point, but if the company’s CEO is to be believed, the company will get back to the right path really soon. Gionee did not introduce a single new smartphone this year, the last devices the company announced where the Gionee S11, S11S, and S11 Lite, which were introduced back in November last year, and are available for purchase since December. The company is expected to introduce new devices in the coming weeks, as they have not introduced anything for over four months at this point. It remains to be seen if Gionee’s problems will have a serious effect on their smartphone lineups and announcement deadlines, but it is possible.