Xingyu has disciplined four executives after a public outcry over its decision to force recent college graduates to resign or accept factory-floor roles.

Xingyu, a major automotive lighting manufacturer in eastern China, has penalized four executives following a nationwide backlash over the mass dismissal of recent college graduates. The company, which is listed in Shanghai, admitted to "misjudgment and hasty decision-making" and has pledged to assist the affected former employees in securing new jobs.

The ultimatum to graduates

In early August, the company presented more than 370 fresh graduates, who had been hired one month prior, with a choice: resign voluntarily to receive half a month’s salary, or be reassigned from office-based technical roles to factory-floor positions, such as tightening screws. According to the firm, 107 of the graduates chose to resign.

Company response and public fallout

Following the incident, two top executives received salary deductions, while two human resources managers were either dismissed or demoted. The company’s actions drew significant criticism, including a commentary from the People’s Daily, which described the move as a "blatant trampling of social trust."