Retailing, Franchising, and Consumerism Business Intelligence in China

Wal-Mart China Begins Management Reorganization

Wal-Mart China is said to have begun a program to optimize the structure of its middle level management.

It is learned that the company has put forward three options for its middle level managers: to resign, to be transferred to a new store, or to be downgraded and paid less. For those who are willing to resign, the company will compensate them based on the time they've worked for the company plus an extra month's salary.

According to the chairman of a Wal-Mart store in Shenzhen, the company's measure has astonished many managers. Surprisingly none of them want to be downgraded or to receive less pay. However, the company has not given them detailed information of any new stores even if they are willing to be transferred to keep their current position.

Believing that the company is using this to reduce staff, employees have turned to the Shenzhen Municipal Federation of Trade Unions for legal aid. And the federation says it will report this to the All China Federation of Trade Unions.

A representative from Wal-Mart China's Public Relations Department states that since Wal-Mart has been in China for 13 years, it is now time for it to enter a new stage of development. As a result, it needs to optimize its operations and cut the extra management level (which is known to be the position of assistant to a shopping mall general manager). It is learned that a total of more than 100 people, all of them are middle level managers or heads in Wal-Mart stores in Shenzhen have been affected.

Apart from Shenzhen, it is learned that Wal-Mart will also conduct the reorganization in its stores in Fujian, Changsha and Dongguan.

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