Huge IT layoffs in China due to Labor Friction

Labor turbulence is expected to increase following immense layoffs at a number of IT giants in the market arena, with experts calling on the international organization to take in the problem seriously.

Cisco Systems announced its plan for “global job cuts”, while thousands of employees in a China based Microsoft Company were trying to settle a deal for an enhanced reimbursement following the massive layoffs.

"Labor disagreement involving out of the country IT (information technology) companies were set to grow for the next 2years but economy in China slows," said by Zhang Zhiru a labor expert on rights.

He stated that though most of IT companies are reluctant to provide compensation higher than what was provided for them under the Chinese Law. This doesn’t mean that they have ended a perfect job.

"The laws for the Chinese were only set at a minimum level. Those Companies with superior financial power should pay more (refers to “layoff compensation”)” Zhang said.

The world’s largest equipment maker Cisco has a plan to cut 6,000 employees worldwide. It did not state how many jobs will lose in China but they are one of the biggest consumers in IT.

Microsoft has its plan to cut 4,000 jobs in China and according to sources most of the cuts will come on the 3 Nokia facilities acquired in China Months ago.