SHANGHAI - China's e-cigarette industry has laid off around 50,000 people since October, roughly 10% of its workforce, trade association estimates showed, as tightened regulation in the United States and China smother the once-booming sector.
Factories in the southern Chinese city of Shenzhen, where approximately 90% of the world's e-cigarettes are made by a 500,000-strong workforce, have consequently slowed production and cut staff. Association Chair Ou Junbiao, founder of e-cigarette maker Sigilei, earlier this month told media outlet China Venture that his company has cut headcount by about half from around 1,000.
Another person at a factory of 300 workers said orders have fallen 30% since their peak, and that management will consider layoffs if the regulatory environment does not improve next year.Leo Chan, an investor at venture capital firm Autobot who researches China's e-cigarette industry, said some makers tried to shift excess inventory by opening offline stores, but the increased competition angered original offline franchise partners.
Malaysia Malaysia Latest News, Malaysia Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »