Xinchao Media, which provides adverts for elevators and escalators, has slashed a total of 500 jobs in a bid to save money and protect cashflow.

According to Sky News, around 500 million people in China are currently self-isolating. For OOH companies, this means a dramatic drop in ad reach in public spaces such as bus stops.

While Xinchao Media claims to reduce its total number of staff by 10% annually based on performance, a statement from the company’s chief executive officer paints a more specific picture of the strain caused by coronavirus.

In a statement following the news of job cuts, Zhang Jizue, chief executive officer of Xinchao Media comments: “As a middle-aged entrepreneur from Chengdu city, I have led the team to overcome the SARS epidemic in 2003 and the 2008 Sichuan earthquake. But I am still afraid of being defeated by the coronavirus outbreak in 2020.

“To survive from the epidemic, we will have to slam on the brakes, retrench cash flows, and reduce costs, ensuring that the company will live through.”

According to local news outlet, Deal Street Asia, the company’s executives also agreed to have their paychecks reduced by 20% in a bid to save costs.

The firm has estimated that it can survive a further six to seven months before it runs out of its current cash reserve of 1 billion yuan (£110m) providing it receives no operating income in that time.

In the latest update from the World Health Organisation, 71,429 cases of coronavirus have been confirmed globally, with 70,635 of these occurring in China.

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