Chinese video surveillance technology supplier Hikvision is reportedly cutting jobs in its research and development (R&D) department, as the US-sanctioned company grapples with business pressure under geopolitical and economic headwinds.
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The Hangzhou, Zhejiang-based company is expected to lay off over 1,000 employees in China in a significant downsizing of its R&D team, according to a report on Friday from local online news platform Sina Tech.
While Hikvision subsequently denied it was planning any “large-scale lay-offs”, the company said it was making internal adjustments required for the “optimisation of R&D power” in its headquarters and key sales cities. It adjusted “some regional job settings accordingly”, several Chinese media outlets reported.
Chinese companies often refer to job cuts as business “optimisation” to avoid drawing unwanted attention from the public. Under Chinese law, lay-offs involving more than 20 employees, or more than 10 per cent of a company’s workforce, require the intervention of labour authorities.
Hikvision had 58,544 employees at the end of last year, according to its annual report. The Shenzhen-listed company did not immediately respond to a request for comment on Saturday.
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The adjustments reflect the challenges faced by Hikvision amid ongoing US sanctions and a sluggish domestic economy.