Chinese home electronics and appliances manufacturer Haier Group announced that it will lay off around 10,000 workers this year, after cutting 16,000 jobs last year, as part of its adjustment in relation to the changing market in China.

The announcement by Haier, made by its Chief Executive Officer Zhang Ruimin, came around the same time that China's Great Wall Motors denied reports that it will cut 20,000 workers as the country continues to experience an economic slowdown.

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Zang told Chinese journalists that most of the 10,000 staff that will be cut this year will be mid-level employees and stressed that the downsizing of the company is part of Haier's effort to catch up with the changer market in the country, especially in the Internet era.

"The Internet era has cut the distance between manufacturers and customers and overturns the traditional enterprise management theory and thus mid-level employees who do not interact with customers are not needed anymore," Zhang was quoted as saying.

He added that Haier aims to be a customer-centric company and that requires its workers to know their customers well and design products that will address the customers' needs. Haier now requires workers to create small groups and focus on specific markets.

"It is a way of encouraging innovation instead of the old pattern of workers following leaders' orders," he said, adding that the company even encourages workers to start their own business and become Haier's suppliers.

Experts, however, doubted Haier's ambitious business model change as the main reason for the large-scale downsizing. According to a home appliance industry analyst, Haier is faced with a dwindling market share especially in sales of refrigerators, air conditioners, washers, and television sets.

The Beijing-based analyst said China home appliance industry has been experiencing sluggish growth, a factor that could have put more pressure on Haier and other home appliance retailers in the country.

Haier's downsizing falls in contrast to the central government's effort to provide more jobs to its people even as the country is facing a sluggish economy.

TagsHaier, Haier Lay Off, Haier Cuts Jobs, Haier Lay Off Workers, Jobs in Haier