TP-Link is shifting its Shenzhen workforce into a new subsidiary called Sima Logic. The move triggers mass contract transfers that staff members resist because they fear reduced legal protections and potential social security payment interruptions starting in June 2026. The restructuring follows a large-scale layoff event earlier this year.
Employees resist contract transfers amid fears of reduced legal protections and social security interruptions starting June 2026
The company operates primarily in the networking hardware sector with a focus on wireless routers, video products, and small to medium business equipment. Sima Logic serves as a wholly-owned subsidiary with registered capital of 30 million RMB. This figure sits significantly lower than TP-Link parent company capital levels.
Market data indicates TP-Link lost its dominant position in the Chinese router sector during April 2026. The brand held a 20.3 percent market share that month, dropping to third place behind Huawei at 27.1 percent and Xiaomi at 22.3 percent. Domestic media reports cite these figures without independent verification.
Employee testimony confirms TP-Link completed over 140 layoffs across core product lines in April 2026. Workers fear the contract transfer structure limits severance options if the subsidiary faces bankruptcy. TP-Link has not issued a public statement addressing these employee concerns or verifying the reported reduction in staff size.
TP-Link relies on domestic Chinese media channels to share operational updates and market positioning details. The brand maintains its focus on consumer networking hardware while navigating workforce restructuring challenges.
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