WAL-MART China Layoffs Cited Controversy

As we all know, as the two largest system in the retail industry, WAL-MART's centralization and Carrefour's decentralization have always been controversial by the industry.

Gao Fulan's predecessor and then WAL-MART China CEO Chen Yaochang once devolved the power of the headquarters to the industry as a signal of WAL-MART's decentralization.

However, since Gao Fu Lan came to power, he cut off the former city procurement office and returned to centralization.

Just as WAL-MART cut personnel, news came out that WAL-MART would abolish the eastern North China region and adjust the original six regions of North China, East China, central China, Southern China, West China and Northeast China to five.

WAL-MART said that the operation area will be changed from 6 to 5. The Dalian regional office will be abolished. The management functions of the relevant stores in the region will be pferred to the Beijing regional office. The stores will not be affected. The adjustment will mainly involve headquarters and regional management positions. "These adjustments are aimed at streamlining the business process and further improving the efficiency of the organization so as to win the competitive advantage of the future market."

From the beginning of this year to a series of layoffs and downsizing, WAL-MART's move seems to be somewhat unclear.

In response to the recent large-scale layoffs, WAL-MART's response to the media also said, "these adjustments are aimed at streamlining business processes and further improving organizational efficiency."

In fact, since the era of high Fu Lan, WAL-MART has stepped up its centralization.

Although WAL-MART's actions in recent years have been seen as a return to WAL-MART's original values, downsizing is also a reflection of the plagued by its bloated institutions.

According to a senior executive who did not want to be named by WAL-MART, China WAL-MART early divided the whole China into 6 major regions: North China, East China, central China, Southern China, West China and Northeast China.

There are many links. According to the internal mail sent by Ke Junxian, the structural adjustment will fully integrate the regional 1 and 2, and the related management functions will be pferred to the regional office of Beijing. Based on this, the North China region will be established; 5 operational areas (North China, East China, Southern China, Huxi and central China); 33 new operational divisions of the new reorganization, of which Anhui is assigned to East China.

Ding Liguo said, WAL-MART reduced.

In order to strengthen centralization from a management point of view, the area is too scattered and is not conducive to procurement and management. The cost is very high. Carrefour is also the 5 major regions.

Beyond all doubt,

It is a way for WAL-MART to continue to solve its bloated and "take over" power.

But is it just because of "accepting power"? Because many friends still work in WAL-MART, and some of them are in the first round of layoffs, a WAL-MART former middle-level employee is very concerned about WAL-MART's layoffs. He told reporters that in fact, the layoffs of WAL-MART included multiple purposes.

Labor costs, because of the rising cost of the old staff, is also an important reason for their "killing".

With the reduction of institutions and personnel, some labor pains also arise.

"WAL-MART cuts institutions, especially reducing management levels to improve efficiency.

But on the other hand,

Reducing the number of primary staff at the store reduces customer service and shopping experience.

In some stores, there will be fewer queues at the grass-roots level, lack of timely replenishment, shortage of shelves, shopping for customers, and even the cleanliness of stores.