OSI Group began mass layoffs Monday at the Shanghai unit that is under investigation for allegedly selling stale meat to fast-food chains such as McDonald’s and KFC, the Wall Street Journal reported.
US-based OSI was quoted as saying that about 340 employees of Shanghai Husi Food are being laid off, while a small number will be retained to assist with the continuing investigation.
“Shanghai Husi has experienced significant financial and customer losses” over the past two months since the investigation started, it was quoted as saying.
Since the allegations first appeared in a television report, OSI’s business has taken a hit in China, with McDonald’s, KFC and 7-Eleven chains and other customers cutting ties with the food processor.
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