Some property developers are known to have laid off as many as half of their staff in the past several months.
"The cost of human resources accounts for a big share of the cash flow though it occupies a very small share in the real estate developing cost," said Li Wenjie, a managing director from Centaline Property Agency Ltd. "Since projects do not sell well in current market, it is hard to maintain a liquid cash flow"， forcing developers to cut salary expenses, he said.
Zhujiang Real Estate Company in Guangzhou is reported to have retrenched nearly 40 percent of its total staff, while cutting the salaries of the remaining ones by up to 30 percent.
"In the past, we were used to fat year-end bonuses and other rewards," said a salesperson with a Bejing-based high-end property developer. "This year, we are worrying about our jobs."
