(Yicai Global) Nov. 15 -- Shares in Central China Real Estate, the listed arm of Central China Real Estate Group, soared today after reports surfaced that the largest property developer in the country’s central Henan province is letting 7,000 employees go.

Central China Real Estate’s share price [HKG:0832] surged 11.7 percent to close at CNY0.38 (USD0.05).

The layoffs include core staff such as property consultants and landscaping workers, The Paper reported today, citing company insiders.

CCRE Group will make some employees redundant, but it has not set a target number, Henan Daily Press Group’s media platform Dahe Fortune Cube reported yesterday.

Some people have already been notified, The Paper reported. They will receive their delayed salaries in two installments – half on Dec. 10 and half on Jan. 10 next year.

Those who sign agreements to leave the company on or before Nov. 15 will receive compensation in installments over the next 12 months, it added. While those who pen deals between Nov. 16 and Nov. 20 will be paid off over the next 18 months.

The developer, which hemorrhaged CNY5.6 billion (USD796.3 million) in the first half due to lackluster sales and the fallout from the Covdi-19 pandemic, had no comment to make on the matter, the report said.

It is the second time this year there has been rumor of mass layoffs at the group, which runs several subsidiaries including CCRE, Central China Management, Central China New Life, DIT Group. In February, there was hearsay that the firm would slash its headcount by 61 percent and retain only 400 employees. The developer denied the rumor at the time.

Editor: Kim Taylor