An executive from China Unicom denied on July 17 the rumors that China Unicom would cut off 600 jobs after the merger with China Netcom. The executive added that China Unicom would not lay off employees in terms of the new contract law.

Branches of China Unicom so far have not been informed of staff reduction.

In the wake of the merger, China Unicom has started designing new corporate structure to reallocate employees of China Unicom and China Netcom.

Before the merger, China Unicom consisted of 27 departments such as GSM department, CDMA department, value-added telecom service department, network construction department, technical department, and operation and maintenance department. As for China Netcom, it included 21 departments.

An insider from China Netcom says that staff reduction is a must. It is likely to set up more departments for its employees in the beginning and then reallocate part of them to other departments.

Source:SinoCast