Now-private Li & Fung has started slashing around 70% staff at the procurement department in Hong Kong since last week, affecting hundreds of people. There are also layoffs in Shanghai and Shenzhen, however, the actual number of people involved remains unknown.
Li & Fung responded that the staff adjustment was made due to pandemic hit. However, they did not disclose further details on the job cut.Last week, the sourcing and logistics company officially went private, its shares delisted from the Hong Kong Stock Exchange on May 27, finally closing at 1.24 HKD ($0.16)—a 94 percent value loss from a peak performance period in 2011. Though the Fung family still maintains a controlling 60 percent share of the company, the rest now lies in the hands of Singapore-headquartered global logistics warehouse operator and investor GLP.
“Today marks the start of a new journey for Li & Fung as we focus on achieving a fundamental transformation of our business. While there will be challenges to manage, Li & Fung will benefit greatly from our partnership with GLP,” Group CEO Spencer Fung said last Wednesday.