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    Home > Chemial News > Company News > German giant layoffs 30,000 people! Industry leader brutally auctioned

    German giant layoffs 30,000 people! Industry leader brutally auctioned

    Echemi 2020-09-14

    Business crisis! German giant laid off 30,000 employees!

    In fact, companies that have been hit hard by the epidemic and have fallen into business crisis will experience a cold winter in the global industry in 2020, and countless companies have suffered heavy losses. Among them, many large companies have also fallen into a business crisis and have been forced to start layoff plans to protect their capital.

    On September 1, Continental issued a statement saying that it is experiencing the biggest business crisis in 70 years. At the end of the month, it will announce further layoff plans, and the proportion of job cuts is as high as 13%! According to data, Continental has more than 245,000 employees worldwide, and the layoff plan is expected to lay off more than 30,000 employees!

    As we all know, due to travel restrictions, trade restrictions and other factors, this year's automobile industry chain has been hit hard, terminal demand has plummeted, and more than 100 automobile factories in 26 countries around the world have stopped production. According to data, the German Continental Group’s total sales in the first half of 2020 were 16.53 billion euros, down 26% year-on-year, and the pre-interest and tax profit loss was 393 million euros, down 125% year-on-year. Among them, Continental Tire, its main business, only made profits. With 790 million US dollars, profits fell 41%. After experiencing a backlog of losses for more than half a year, Continental could not escape the layoffs.

    The best employers consider layoffs worldwide!

    Also struggling is the American oil giant Exxon Mobil! Known as the best employer, there have been some layoffs recently.

    On September 2, Exxon Mobil announced that it plans to lay off employees worldwide, and the plan is currently under evaluation. As soon as the news came out, the market was in an uproar: After Whiting Oil, Chevron, and Shell, ExxonMobil will also lay off employees. Is the oil industry dying?

    In July of this year, when most of the oil and gas companies were in a crisis of layoffs, Exxon Mobil had stated that the epidemic did not cause the company to have layoff plans. After finally getting through the epidemic, I was stuck by performance. According to data, Exxon Mobil's stock price has plummeted many times. The stock price has plummeted by as much as 40% since the beginning of this year. The second quarter financial report showed that the revenue was 32.6 billion U.S. dollars and the net loss was as high as 1.1 billion U.S. dollars. It was the worst single-quarter loss in history! Under the sluggish performance, Exxon Mobil was "abandoned" by the Dow Jones Index and was forced to start a layoff plan.

    According to previous news reports: ExxonMobil proposed a competitive job in June to eliminate 5%-10% of its employees; in August, it plans to cut capital and operating expenses at the same time. It has already cut capital expenditures by 30%, a reduction of 23 billion US dollars. ;
    At the beginning of September, ExxonMobil Australia launched the "Employee Voluntary Separation Program"; in addition, ExxonMobil is also planning to sell 50% of the joint venture's worth of US$3 billion and sell or close its Australian refinery.

    Layoffs, selling assets, and selling equipment show that ExxonMobil’s economic crisis is beginning to emerge. Large companies with industries all over the world are struggling to survive the shortage of orders, let alone small and medium-sized enterprises of a single one?

    The domestic textile leader was auctioned again!

    Orders have dropped sharply, even tending to zero. Many business crises have stimulated corporate financial crises, pushing companies into a desperate situation of bankruptcy and auction.

    The news that the domestic chemical fiber manufacturer Huaxin Chemical Fiber Technology Group Co., Ltd. will be auctioned on September 14 shocked the domestic chemical market. It is understood that this is the second time Huaxin Chemical Fiber has been auctioned. Due to the inability to pay off the due debts, Huaxin Chemical Fiber was auctioned for 826 million yuan in November 2019, but less than a year after the auction, Huaxin Chemical Fiber was hit by its performance again, and its insolvency was sent to the auction stage again, which is really embarrassing .

    The current epidemic has disrupted many people’s plans. Many customers have been trapped in the epidemic or even lost contact, the finished products cannot be delivered to customers or even can’t make it out, orders are reduced or even returned, companies suspend work, layoffs and even close down. The chemical industry has suffered a "great slip."

    It is reported that even in the pharmaceutical industry, which is regarded as the hottest this year, 14 pharmaceutical companies have declared bankruptcy due to lack of orders and poor management of their debts. Among them, Suzhou Hongjian Biotechnology Co., Ltd., Jiangsu Xinfukang Biotechnology Co., Ltd., Guangzhou Pharmaceutical Economic Development Company Yuexiu District Chinese Medicine Business Department, Ningxia Pharmaceutical Commercial (Group) Co., Ltd. and its 9 subsidiaries, Foshan Huayi Pharmaceutical Trading Co., Ltd. and many pharmaceutical-related companies have published bankruptcy documents

    The aftershocks of the epidemic are still there, and Jinjiu is working hard to save the market!

    The backlog of funds at the beginning of the year eventually led to layoffs, sales and even bankruptcy. Since most of the fabrics were restricted in both domestic and foreign trade in the first and second quarters, there were no orders to do so a large amount of debts could not be paid off in time. Due to the aftershocks of the epidemic, although the current chemical market is recovering and raw materials are beginning to rise, some businesses choose to sell their goods to withdraw funds. The current market prices are chaotic, resulting in a situation where some gold is not gold.

    Now that we have survived the peak of the epidemic, we hope that all chemical workers will refrain from disrupting the market by maliciously lowering prices in order to grab orders, and meet the golden nine together and survive.

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