China Merchants Securities first layoff 5 pct staff
Insiders in China Merchants Securities (CMS) confirmed that the securities firm is carrying out a 5 percent elimination to the last, according to the Financial Weekly. Some investment bank employees have been transferred to other departments. And some investment bank staff who didn’t accept job transfers chose simply to leave. The timing of transfers and layoffs relates to many sponsor representatives and quasi-sponsor representatives.
This is the first time CMS has had to lay off personnel. A person working in the investment bank department of the securities firm said that mainly new staff have been fired, so there’s not so much obstruction towards the redundancy.
Different from other securities firms, the redundancy of CMS only focuses on the investment banking department. Currently, there are 300 people working in that department in CMS. With a 5 percent layoff ratio, it is estimated that around 15 people will be leaving.
Disclosed by the official website of the China Securities Regulatory Commission (CSRC), CMS has 82 sponsor representatives. But it has only seven IPOs, with three additional programs were completed this. If each sponsor representative signs one contract, which represents the lowest efficiency of the human resource use, a maximum of merely 20 sponsor representatives have been engaged in projects. The rest of the 62 sponsor representatives had no output, which may make it difficult to recoup their 100 million yuan annual salaries.