Business News

Hong Kong’s Li & Fung to cut
costs due to global slump
Agence France-Presse . Hong Kong

Hong Kong sourcing giant Li & Fung has implemented a hiring freeze, cut travel expenses and could lay off some employees because of the slowing global economy, the company said.
The firm supplies global retailers, including US giant Wal-Mart, with goods ranging from clothes to gadgets, often made in southern China’s factory belt.
‘Due to worsening economic conditions which are impacting some of its customers, Li & Fung... announced that the company is undertaking a critical review of its cost structure,’ it said in a statement issued late Saturday.
‘Initiatives include a hiring freeze in most locations, reduction of travel and other discretionary expenses and, as a last resort, employee down-staffing,’ the statement added.
‘At this stage, it is envisaged that a limited number of employees working with business units whose customers have suffered most severely will be made redundant.’
Demand for goods from southern China has dropped dramatically in the past few months, manufacturers say, as the global slowdown squeezes demand in Europe and the United States. Thousands of factories have gone out of business.