International tech firm Hewlett-Packard Co. (HP Co.) has recently shuffled its top management in one of its subsidiaries located in China as it becomes the target of worker protests.
An email sent by HP Chief Executive Meg Whitman announced that former H3C Technologies' Chief Operating Officer Henry Xiang-Ying Cao would take over as CEO, as former CEO Jesie Jing-Chuan Wu was promoted as the subsidiary's vice-chairman.
Whitman also informed the workers in a separate email of long-term financial incentives that they would be eligible for.
The announcement came in the wake of employees clamoring for incentives and protesting a management move that saw HP China Chairman Bob Mao also appointed as the unit's chairman.
The reshuffling in top management follows an October report by the Journal that revealed HP's desire to find a potential buyer for the majority of the stakes in H3C. The objective was to look for someone who would acquire more than half of the shares and could help the business grow by winning more local contracts.
H3C was originally part of Chinese telecommunications company Huawei Technologies Co., but since the firm is listed as a subsidiary of HP, a big probability that it would be considered as a foreign company is high.
A representative from HP told reporters on Sunday that "HP remains committed to the China market and our H3C business," further adding that "with today's changes, we are confident that we have the right leadership team in place to continue to grow in this important market."
Employees who have heard of the possible change in control showed their disapproval by refusing to go to work. Others have made up slogans and posters and placed them on workstations to voice out their concerns.
A major concern of the employees points to the possible conflict of the subsidiary's American owners with the unit's desire to be a major supplier of networking to the Chinese government.
The workers have demanded that Mao be replaced as the HP China chairman's appointment as the unit's head would hurt the firm long-term. The employees have sought an internal head who they deem would prioritize their unit first.
Workers have also demanded for stocks share in the company as they see the huge benefits should stake be sold.
The new management has yet to announce if they would accede to the workers' demands and their new plan of action in light of the protests.