AutoBeta(AutoBeta.net)06/14 Report--

According to media reports citing Geely's internal employees, Geely's "Blue Ocean plan" has been questioned about "disguised layoffs", with a proportion of about 20% layoffs for ordinary employees and 30% management optimization.

According to a notice issued by Geely Group in April, the so-called "Blue Ocean Project" is a new type of training project based on organizational innovation and efficiency improvement, in the face of unknown, complex and uncertain market environment, through actual combat exercises, value reengineering, and so on. the aim is to build a number of active and efficient teams. The plan is suitable for transforming cadres and employees to be activated in organizational change, and different programs are designed for front-line, non-frontline and cadre groups, and the training cycle is expected to be half a year to one year.

It is understood that Geely's "Blue Ocean Project" was officially launched in May this year, and employees whose performance was rated C need to undergo nearly a month of training in mid-May. According to the salary and welfare standards during the training period of the Blue Ocean Plan, employees can only receive basic salary and post salary during the training period, and there is no performance pay. However, for those employees who take part in the Blue Ocean project training, their future positions will face great uncertainty, which has become a direct reason why many Geely employees choose to leave.

As a result, the "Blue Ocean Plan" with rather stringent conditions is regarded by many Geely employees as layoffs in disguise. It is understood that according to the relevant provisions of the Labor contract Law, enterprises need to pay Nation1 financial compensation when they are laid off, but if employees offer to leave voluntarily, the company does not have to pay compensation.

Geely's suspected "disguised layoffs" contradicted what was said at the results conference at the end of March this year. At the end of March this year, an Conghui, president of Geely Holdings, said at a 2019 results conference that he promised not to lay off staff, not to cut wages, not to delay pay, but to use organizational innovation and efficiency improvement to deal with the impact of the epidemic.

Geely said at its 2019 earnings conference that R & D spending will drop to 4.5 billion yuan in 2020. At the same time, it will strive for a reduction of 10% or more in sales expenses and management expenses, and capital expenditure is expected to fall from 7.6 billion yuan in 2019 to 6.8 billion yuan in 2020.

However, this does not stop Geely's external expansion. Valin Star Horse announced on June 12 that Xingma Group, the controlling shareholder of Valin Star Horse, and its wholly-owned subsidiary Huashen Building Materials intend to transfer 84.68 million shares of the company, accounting for 15.24% of the company's total share capital, by openly soliciting the transferee. According to the minimum transfer price of 5.14 yuan per share of Valin Star Horse, the lowest transfer price of 15.24% of its shares is 435 million yuan.

On May 29th, Geely announced that it planned to issue 600m shares, raising a maximum of about 6.72 billion yuan. Public data show that by the end of 2019, Geely Motor's cash and equivalents at the end of the period is 19.3 billion yuan. After this additional issue, Geely Automobile will have about 25 billion yuan in cash on hand.

Geely Automobile is regarded as the leading enterprise of China's own brands, with Geely, Lecker, Geometry, Proton, Lutes and other brands. Under the influence of the epidemic, a number of car companies announced layoffs and pay cuts, but Geely stressed that there would be no layoffs, wage cuts and deferred pay, which was indeed praised by many people in the industry. However, with the announcement of the "Blue Ocean Plan", information about Geely's disguised layoffs has been widely circulated on the forum, headlines and Zhihu.

Whether Geely's Blue Ocean Plan is a "disguised layoff" is debatable, but employees' understanding of Geely's "Blue Ocean Plan" is also understandable. After all, according to the current situation, life will not be very easy for any car company, and there is nothing wrong with layoffs and pay cuts, but if the "Blue Ocean Plan" is really a way to lay off staff, Geely can be more honest, especially on the issue of compensation.

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