The restructuring of Guangdong Enterprises (GDE) has seen more than 500 loss-making companies close in the past two years and about 15,000 employees laid off, according to a senior group executive.
GDE, the so-called window company of the Guangdong provincial government, is obliged to repay 100-odd foreign creditor banks after undergoing a US$5.59 billion debt restructuring.
Wu Jiesi, chairman of GDH - set up to represent the Guangdong government's interests - said yesterday the company had become leaner, with just 40 companies and 8,000 people under its control.
GDE originally had a bloated workforce of 23,000.
'Senior executives of those member companies incurring losses are fired right away, with no chances given,' Mr Wu said on the sidelines of the National People's Congress.
'We have fired many such executives in the last two years. The exercises have helped the firm's turnaround in profit over the past two years after being mired in debt in 2000.'