Source: Human Resources Sharing | hrgogogo Author: HRGO
The pandemic has swept across industries, leaving many in depression. Recently, a joint survey by Tsinghua and Peking University of 995 small and medium-sized enterprises showed that nearly 85% of companies cannot survive more than 3 months with their current cash flow, and less than 10% can sustain for more than half a year. Because of this, companies frequently resort to salary cuts, layoffs, and other survival tactics.
This week, the well-known snack retail brand "Lai Yifen" (来伊份) has been rumored to have large-scale salary freezes and layoffs. This company, which won the "China's Best Employer of the Year" in 2015 and ranked among the top 30 in Shanghai, is also having a hard time.
-01- Lai Yifen in a Hurry to Save Itself Falls into Salary Cut and Layoff Turmoil
If you browse user reviews on Weibo or Dianping, you'll find that "Lai Yifen" has been criticized by consumers multiple times, for example: high prices, limited variety, average taste, and better to buy snacks online.
In recent days, Lai Yifen employees have also tipped off multiple media outlets about unreasonable layoffs.
A PPT of Lai Yifen's "cost reduction strategy" has been shared online, clearly stating:
- One in, one out, freeze some recruitment; 2) Personnel rated C and D, optimize a total of 83%; 3) Optimize 15% of employees within one year of joining; 4) Reduce internal staff by 10% across the group; 5) All centers must achieve cost reduction targets, with HR setting the goals;
- Lai Yifen's annual theme for 2020: All-Staff Sales.
The message from these 6 points is clear: Lai Yifen may be undergoing the biggest change in its history.
Although the PPT does not specify the exact measures for "optimization," most can guess it likely means: transfer to sales positions + layoffs.
The macro environment is forcing Lai Yifen to take self-rescue measures.
-02- Lai Yifen Immediately Clarifies This Optimization Has Nothing to Do with the Pandemic
According to Lai Yifen's financial reports, the company's revenue has maintained overall growth in recent years, but net profit has declined significantly.
In 2018, net profit plummeted from 100 million yuan in the same period of 2017 to 10 million yuan, meaning that in just one year, Lai Yifen's net profit shrank by about 90%.
Lai Yifen explained that this was due to increased management and technical personnel reserves and higher labor costs.
In response to the layoffs, Lai Yifen's chairman Shi Yonglei told Interface News reporters:
- There are no layoffs; 2) It is normal for employees to fail performance assessments; 3) This optimization is caused by individual employees failing assessments; 4) It has nothing to do with the pandemic, and the company will not lay off employees due to operational difficulties.
In other words, Lai Yifen's official statement is: this is a normal talent elimination.
However, the information disclosed by employees differs from the official statement.
On March 19, media disclosed a "Notice of Termination of Labor Relations" from Shanghai Lai Yifen Co., Ltd., stating that Lai Yifen decided to terminate the labor contract with an employee on the grounds of "poor work attitude affecting team work, and daily behavior violating company rules."
The notice was issued on March 17, requiring the employee to complete procedures by March 19. That means the employee needed to complete all work handover and physical transfer procedures within 48 hours. Employees complained to the media: "The company can lay you off whenever it wants."
Several Lai Yifen employees also revealed to the media that layoffs do exist and the situation is not optimistic.
-03- Layoffs Are Not the Solution Performance Is Your Dignity
Lai Yifen started as a local Shanghai couple's nut shop, and in 2016 officially listed on the A-share market as the first snack stock. Its stock price once rose from over 9 yuan to over 50 yuan, and its market value once reached 10 billion yuan, becoming a legend.
But recently, Lai Yifen has indeed encountered difficulties, and the unsuccessful business development has also led to changes in Lai Yifen's senior management. On March 1 this year, Lai Yifen announced that Vice President Feng Xuantian resigned due to personal reasons.
In December 2018, Lai Yifen received written resignation reports from shareholder supervisor Zou Xiaojun and director and board secretary Zhang Panhong. Several senior executives have left one after another, which to some extent reflects that Lai Yifen's current situation is not satisfactory.
Peter Drucker, the father of modern management, once said: The greatest risk in turbulent times is not the turbulence itself, but to act with yesterday's logic. Can those impulsive job quitters really unload their burdens and feel relaxed? Can those companies that lay off employees really reduce costs and achieve longevity?
The answer is not necessarily!
In a competitive society, many times, explanations are meaningless.
Layoffs are layoffs, difficulties are difficulties, these are all normal. Explanations are often seen as shirking responsibility. If you don't want to see the result you don't want, then face the problem and change the process.
For individuals and companies alike, show your performance; everything else is fake.
This pandemic has sounded an alarm for Lai Yifen and the entire retail industry. Performance is your dignity and your bottom line. Without performance, no one will have a good time.
Finally, I hope Lai Yifen can overcome the difficulties. Come on!
Tips will be paid 400-2000 yuan once adopted.