China Developer Forced to Sack 90% of Workers in Bid to Survive
For years, betting big was the route to success for entrepreneurs. The main aim for many now is just to stay in business.
Languang has slashed about 90% of its workforce since early 2021 and reported an accrued loss of 11.7 billion yuan ($1.7 billion) as of the third quarter last year.
Source: Bloomberg
After a sweeping two-year crackdown on its debt-ridden property developers, China’s recent moves to shore up the sector are bringing some respite. But a slew of smaller builders are still struggling for survival.
A case in point is Sichuan Languang Development Co., a builder of residential buildings and offices based in the southwestern city of Chengdu. Languang has slashed about 90% of its workforce since early 2021 and reported an accrued loss of 11.7 billion yuan ($1.7 billion) as of the third quarter last year. It’s been selling off assets as it fights to stay afloat, and 27-year-old chairman Yang Wuzheng has approached dozens of larger real estate companies and other potential investors in search of a bailout—so far, without success.