Massive layoffs begin, Wanda Group cuts costs

News on May 18: Recent news shows that Wanda Group is discussing with major domestic banks a plan to renew domestic loans without principal repayment to cope with its liquidity pressure and debt problems. It is understood that Wanda Group is facing severe periodic difficulties. The company's short-term borrowings and maturing non-current liabilities have increased significantly, resulting in total liabilities of nearly 80 billion yuan, and the monetary funds held by the company cannot cover short-term debts. The move was seen as a clear sign of liquidity pressure on the company.

Zhuhai Wanda Commercial Management Group’s equity repurchase payment was included in the statistics, resulting in a rapid increase in Wanda Group’s short-term liabilities. Although Zhuhai Wanda Commercial Management is highly anticipated as an important subsidiary of Wanda Group, its road to listing has been full of bumps. Re-expressed as follows: Despite the great expectations for the asset-light model of Wanda Group's important subsidiary, Zhuhai Wanda Commercial Management, it has encountered many obstacles along its path to IPO. Zhuhai Wanda Commercial Management has submitted three prospectuses, but none have been approved for listing, which has put tremendous pressure on Wanda Group.

According to ITBEAR technology information reports, in order to solve the predicament, Wanda Group is taking a variety of measures to save the situation. Internally, the company plans to conduct large-scale layoffs before June to reduce personnel costs. In order to increase liquidity, Wanda has used external channels such as pledge financing, bond issuance and cash reduction. However, the company still faces great challenges, especially when Zhuhai Wanda Commercial Management's listing plan encounters obstacles, it may repeat the unfortunate fate of Evergrande Real Estate. In the long term, Wanda Group still needs to overcome many difficulties to achieve its goal of becoming a world-class multinational enterprise.

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