BY SILVI WRITER
China’s troubled largest property developer Country Garden will cut up to 30 percent jobs, while employees who joined the company less than a year ago will have to leave, sources said.
Country Garden has already issued a notice on this decision of major job cut, according to banking sources in China on Tuesday.
China’s property developers have been facing tightened liquidity condition since late last year, as Beijing pushes forward deleveraging campaign to reduce the country’s total debt.
Sources also said Country Garden decided in a recent high-level meeting to slow down the pace of expansion and cut down the size of operation.
Yishaoyan, a popular social media account on the WeChat, has also reported the company’s planned massive job cut.
Country Garden could not be reached for comment by press time. The company now employs more than 150,000 people, according to Chinese media.
Its decision came as Malaysia Prime Minister Mahathir Mohamad said the country would ban foreigners from buying real estate in Country Garden’s Forest City township, the country’s largest residential property project which locates in Johor state, across a river to the north of Singapore.
The project by the Foshan-based Chinese developer has been sold mostly to Chinese investors who have been enticed to the project by long-stay, non-permanent visas that they can apply for.
Country Garden Pacificview said that the comments did not match the prime minister’s previously expressed sentiments and may have been taken out of context, according to local media. The developer also noted that it has complied with all relevant regulations and that under the law foreigners are allowed to buy land in the Malaysia.