The competition in the mainland smart smartphone market is fierce. After adjusting for one year in TCL Communication China, the action of personnel downsizing was made. According to the relevant person in charge of TCL Communication, the Chinese region may cut nearly 100 people this time.
According to the interface news report, the relevant person in charge of TCL said: The impact of this adjustment on Beijing is relatively large. In order to optimize costs and improve operational efficiency, the marketing center in Beijing in China will be moved to Shenzhen.
The report pointed out that TCL Communication also accepted the staff who were willing to transfer from Beijing to Shenzhen. However, due to the large number of people vying for job vacancies, it was still in disguise to cut off the entire marketing department in Beijing.
In addition to the marketing department, the layoffs also involve operations and sales. Insiders of TCL Communications revealed that "this number is likely to reach 100."
In addition to the high operating costs in China, business progress has not met expectations and is the main reason for the layoffs.
TCL Communication's financial report for the first half of 2016 showed that the company's turnover in the first half of 2016 reached HK$10.9 billion, down 17% year-on-year; in the first half of the year, it earned HK$11 million, down 98% year-on-year.
In terms of specific business, the total sales volume of TCL Communication's smartphones and other products was 33.1 million units, down 2% year-on-year. The total sales volume of smart terminals was 17.4 million units, down 12% year-on-year. The overall average selling price decreased from $50.7 in the first half of 2015 to $42.6 in the first half of 2016.
TCL Communication said that the decline in performance in the first half of the year was due to the expansion of mainland smartphone manufacturers to overseas expansion, and the rise of local brands in the market, which further aggravated the competition in the global smart phone market. Especially in Apple, OPPO, Vivo, Huawei has divided the whole market, other brands have been difficult to open a world in it, even the world's fifth-largest TCL is no exception.
Up to 93% of the overseas market is still the main source of revenue for TCL Communications. Li Dongsheng, chairman of TCL Corporation, still wants to have a place in the mainland market. At the beginning of this year, Yang Lanlai, who was the Huawei CMO in China, was recruited. Go to TCL Communications as Chief Operating Officer and President of China. But so far, TCL has not met expectations in the mainland market.
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