Wuhan Iron and Steel, one of China's largest steelmakers, plans to lay off 50,000 workers, the company's chairman Ma Guoqiang said, as China begins to restructure state-owned steel and coal factories. The plan is likely result in a total of 1.8 million job cuts.       

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Wuhan Iron and Steel currently has around 80,000 workers, but will be left with merely 30,000 workers after proposed layoff is carried out.

"Probably 40,000-50,000 people will have to find other ways forward," Guoqiang told people.com.cn, a news portal run by the Communist Party's mouthpiece the People's Daily.  

Without giving any timeframe for the layoffs, Guoqiang said old workers will be given the option of retiring early, while others will be rehabilitated to the firm's non steel affiliates and those who seek job elsewhere will be offered financial stimulus.

The Chinese government has also announced a stimulus package of $15 billion for the 1.8 million steel and coal workers that will be affected massive layoffs.               

China's move to restructure its state owned coal and steel companies is widely seen as a step to fix its slowing economy. The country's economy has been on a downturn for more than a year now, with most economic indicators showing that the world's second largest economy is steadily contracting.   

China's economy grew by 6.9% in 2015, the slowest GDP growth that country has witnessed in 25 years. Economist fear that if China is unable to turn the tide over its slowing economy, it could drag down the global growth.        

TagsChinese Economy, China Lay Offs, Chinese Steel Plant, Wuhan Iron and Steel