(Yicai Global) Feb. 21 -- ZTE’s stock price rose in Shenzhen after The Paper reported yesterday that the Chinese telecoms equipment supplier responded to an article about widespread layoffs at the firm by saying there has been no significant change to staff adjustments and turnover this year.

ZTE [SHE: 000063] ended 2 percent higher at CNY30.16 (USD4.39) a share, after soaring by as much as 5.2 percent in the morning trading session. Its Hong Kong-traded stock [HKG: 0763] fell 0.5 percent to HKD21.30 (USD2.72).

According to a report by financial news outlet Cailianshe early yesterday, ZTE has launched a round of job cuts across business divisions, including its wireless research institute and devices division, with different rates of staff being let go. Some were informed before the Chinese New Year holiday that their redundancy procedures would be completed by the end of this month, according to the report, which cited people familiar with the matter.

Cailianshe said that besides workers being reluctant to switch employers at present, ZTE’s job cuts are also due to a need to downsize after massive hiring in recent years led to redundant personnel, with more cuts likely to follow. The Shenzhen-based company did not provide any details about staff losses.

Many users on job-seeking apps who said they were former ZTE employees -- and most apps do not require users to verify their work experience -- indicated that they were let go after the firm stressed there would be no significant changes this year.

Staff turnover was very stable at ZTE and its subsidiaries, but workers at some units were still laid off recently, one user pointed out. Another user, who received a new graduate offer from the company, said it has become harder for interns to get full-time positions.

ZTE's net profit rose 16.5 percent to CNY6.8 billion (USD989.7 million) in the first three quarters of last year from a year earlier. Revenue grew 10.4 percent to CNY92.6 billion (USD13.5 billion).

Editor: Martin Kadiev