Changzhou Xingyu Automotive Lighting Systems has been exposed for large-scale dismissal of fresh graduates just one month after welcoming its 2026 campus recruitment cohort. The labor inspection brigade of Xinbei District, Changzhou, has formally intervened and launched a comprehensive review of the company's employment compliance. According to leaked HR conversation recordings circulating online, the company required fresh graduates to choose between resigning voluntarily for personal reasons in exchange for half a month's salary compensation, or accepting forced reassignment to front-line assembly line operator positions. The talks also involved implicit coercive tactics such as pressure related to industry background checks. Multiple fresh graduates said that after the layoffs, only about 120 people remained in a group chat that previously had more than 400 fresh graduates, meaning roughly 70 percent of the cohort was no longer in the group. The personnel adjustment took place just one week after the company submitted its second listing application to the Hong Kong Stock Exchange on July 29, 2026, prompting market speculation that the move was intended to polish financial statements and reduce labor costs to support its Hong Kong IPO review. Xingyu Automotive Lighting Systems achieved revenue of 15.257 billion yuan and net profit attributable to the parent company of 1.624 billion yuan in 2025. In the first quarter of 2026, revenue was 3.43 billion yuan and net profit was 355 million yuan, with cash and equivalents exceeding 2 billion yuan. Both performance and cash flow maintained growth. As of press time, Xingyu Automotive Lighting Systems has not formally responded to the mass dismissal incident. Several labor lawyers said its actions are suspected of illegally terminating labor relations.
Changzhou Xingyu Automotive Lighting Systems Co LtdLabor inspection and compliance review over mass dismissal of graduates, with suspected illegal layoffs.
