Throughout the world, most of the time when a merger happens between two companies, there are bound to be duplication of roles. There cannot be two head of departments for the same department. One would have to be the deputy head moving forward or one of the two may choose to leave instead. Every company would have all the typical departments like Sales, Marketing, HR, Finance and even the senior management team. Frankly, a merger does not mean all these people from two different companies could hug one another and accept the other as the new superior for example. There’s this viral news yesterday about a retrenchment of ‘close to 400 staffs. More to come.’
Article in theedgemarkets.com Country Garden Malaysia, the subsidiary of the Hong Kong-listed Country Garden Holdings Co Ltd, has laid off hundreds of staff since December 2019. The reason is believed to be due to the company’s recent restructuring exercise. Close to 400 personnel were given the option to accept a severance package and leave within 48 hours or leave their jobs and negotiate for compensation with the company’s lawyers later.
The Forest City development in Johor is Country Garden Malaysia’s ongoing flagship project in Malaysia. As at March 2019, Forest City had a 1,374-strong staff including 1,078 Malaysians and 296 expatriates. It is believed that the job cuts were because of the merger of four of its subsidiaries with various projects in Malaysia. This was Country Garden Malaysia’s statement to Edgeprop.my. “The objective of the down-sizing exercise was to cultivate the Malaysian market and have a unified interface within all sectors.” Please do read the full article in edgemarkets.com here. Article in theedgemarkets.com
It’s very important to look at all the important signs. This was an orderly conducted exercise regardless of the speed it was conducted. For some businesses, it may not be good to have staffs who are serving notice still inside the company. There’s even a term for it called ‘Gardening Leave.’ As for the close to 400 staffs, it may be more important to understand if they were able to find another job or not.
I looked through JobStreet.com.my and I can confirm that many developers are still hiring at this moment. Thus, it is more of an application and an interview to gauge the suitability of the person. Plus, perhaps a change in working location too, maybe. Last but not least, it’s more important to see if this is a one incident thingy or if most developers will follow the same trend. Happy understanding and not be too alarmed even if negative news are loved by many.
Please LIKE kopiandproperty.com FB page or Sign Up for free to get daily updates about the property market. Else, follow me on Twitter here.
Next suggested article: Working professionals, do you love only your job?