HONG KONG (Reuters) - Chinese conglomerate HNA Group, faced with liquidity concerns after recent debt-fuelled acquisitions, plans “significant cuts” in its workforce this year, Risk Event-Driven and Distressed Intelligence (REDD) reported, citing five unnamed sources.
The job cuts would be part of the group’s “weight-loss” program for this year, the news and analytics provider reported.
The downsizing also would include staff reductions from the aviation-to-financial services conglomerate’s units, whose controlling stakes would be sold to a third party, REDD reported, without identifying those units.
A person familiar with HNA Group’s restructuring process said no such job cuts were planned. HNA Group did not immediately respond to a request for comment.
In recent months, HNA has been racing to alleviate severe financial strain on it following a $50 billion acquisition spree over the past two years, which has sparked scrutiny of its opaque ownership and use of leverage.
The group has amassed an estimated $476 million bill with a state-run aviation fuel company, Reuters reported on Wednesday, underscoring how a deepening cash crunch is plaguing core operations at the conglomerate.
HNA is also seeking to restructure its far-flung operations, while raising cash by selling equity and prime real estate assets. Among its recent divestments are a Sydney office tower and two plots of land in Hong Kong.
REDD reported that as part of the workforce restructuring about 100,000 jobs could be cut this year, a quarter of the group’s more than 400,000 staff. HNA had informed its Hainan-based staff about the cuts, two of the five people told REDD.
Writing by Sumeet Chatterjee; Additional reporting by Matthew Miller; Editing by Stephen Coates