In response to the national reform of state-owned enterprises, China Unicom has taken a leading role, setting an example for other companies. Recently, the company announced that the mixed-ownership reform has reached its final stage and revealed the outcomes of the initiative. The organizational streamlining exceeded expectations, with a 33.3% reduction in the number of departments and a significant 51.6% decrease in staffing.
The streamlining of the organization was the first major step in driving internal reforms within the mixed-ownership enterprise. At the headquarters level, the number of departments dropped from 18 to 12, representing a 33.3% reduction. Staffing also saw a sharp decline, going from 1,787 to 865, a decrease of 51.6%. This restructuring reflects a broader strategy aimed at improving efficiency and agility.
At the provincial branch level, there were notable reductions as well. The number of existing institutions in provincial branches decreased by 205, or 20.5%. Management personnel at the headquarters were reduced by 342, a 15.5% drop. Local companies saw a reduction of 2,013, or 26.7%, while the number of posts was cut by 73, a 4.2% decrease. Provincial-level company management personnel fell by 415, a reduction of 9.8%.
Since the official launch of institutional streamlining in September 2017, China Unicom Group established a dedicated leadership team to oversee the reform process. The company systematically addressed issues related to slimming down operations and improving cadre policies. Since the start of the mixed-ownership reform, the Party committee has focused primarily on this initiative, holding 42 Party meetings and addressing 52 reform-related issues—more than the total number of meetings held in the previous year.
Each branch and subsidiary’s Party committee plays a key role in the organizational streamlining. A special leadership group, led by senior officials, has been set up to coordinate efforts and encourage party members, especially cadres, to actively promote reform.
The streamlining process is guided by principles aimed at addressing deep-seated management issues that no longer fit the new digital era. It involves shifting from a function-oriented approach to a more integrated model, adjusting traditional resource allocation mechanisms, and encouraging the reduction of both institutions and staff. This includes optimizing responsibilities, changing management models, streamlining production processes, and reducing hierarchical layers.
Regarding cadre appointments, the process emphasizes the principle of Party control over personnel, ensuring transparency and fairness throughout. The disciplinary inspection commission is involved in the entire process, and decisions are made based on comprehensive assessments of candidates’ performance and contributions. Additionally, the company is gradually establishing a market-oriented system for cadre appointments, encouraging leaders to move to the front lines and setting annual exit targets to ensure that promotions and exits become routine.
To date, the average exit rate for managers has been around 14.3%. After their initial appointment, all levels of personnel sign a "Performance Task Responsibility Letter," reinforcing accountability. Those hired are encouraged to participate in the selection of lower-level positions, making the process more inclusive and efficient.
Looking ahead, China Unicom plans to continue refining its organizational structure and optimizing business processes in three key areas to ensure the sustainability of these reforms. First, it will dynamically adjust and optimize the organizational structure, promoting institutional innovation. Second, it will establish a market-driven operational mechanism to enhance the company’s vitality and growth potential. Third, it will advance human resources reform, creating a dynamic system that allows for flexible employee movement, effective talent allocation, and a normalized 1.5% annual exit rate for senior Party group managers.
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