Layoffs Now Estimated at 5 to 6 Million for All Zombie Companies

Reuters: China to lay off five to six million workers, earmarks at least $23 billion
China aims to lay off 5-6 million state workers over the next two to three years as part of efforts to curb industrial overcapacity and pollution, two reliable sources said, Beijing's boldest retrenchment program in almost two decades.

China's leadership, obsessed with maintaining stability and making sure redundancies do not lead to unrest, will spend nearly 150 billion yuan ($23 billion) to cover layoffs in just the coal and steel sectors in the next 2-3 years.

The overall figure is likely to rise as closures spread to other industries and even more funding will be required to handle the debt left behind by "zombie" state firms.
Since the worker stabilization estimate has more than quadrupled from the initial 30 billion yuan figure only one month ago, that's a good bet. Bad debt will be many multiples higher.

For steel and coal alone, layoffs of 1.8 million workers are expected.

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