Painful Transformation for Midea Group: Major Restructuring Within Three Months

Writer | BUG Column, Zhou Wenmeng

Midea Group is undergoing another major transformation.

Recently, insiders close to Midea's management revealed that the company has decided to "reorganize its operating structure" and integrate its various business lines, including refrigeration, washing machines, and kitchen appliances. The move is expected to have a significant impact on the company's employees and partners.

The transformation reflects Midea's shift from a wholesale-focused mindset to a retail-oriented one, which may lead to some staff adjustments.

While Midea has not commented on the matter, sources within the company suggest that the restructuring is aimed at streamlining operations and improving profitability.

According to insiders, Midea's regional managers will be assessed based on their performance in selling high-margin products, with a 50% emphasis on retail sales. This shift may lead to some employees being laid off or reassigned.

The company has also implemented a new compensation system for its employees, which is expected to have a significant impact on staff morale and motivation.

Midea's Second Restructuring Within Three Months

Sources within the company reveal that Midea has already begun laying off employees, with some departments experiencing a 20% to 30% reduction in staff. The move is expected to continue throughout the year.

The restructuring may also lead to the closure of some retail stores and the consolidation of others, according to sources.