Vanke makes major organizational structure adjustment: All regional companies are revoked.

It is rumored that Vanke will carry out a new round of major reforms on the company's organizational structure, abolishing all regional companies and transforming into a two - level management system of headquarters - regional general companies.

36Kr learned that no official document on adjusting the organizational structure has been issued within Vanke Group, but the general idea has been basically finalized, and change is only a matter of time.

Currently, Vanke's real estate development business has 5 regional companies, 2 companies directly managed by the headquarters, and 2 general companies:

• 5 regional companies: Beijing, East China, Central China, South China, and Southwest China
• 2 city companies directly managed by the headquarters: Guangzhou - Foshan and Shanghai
• 2 general companies: Northeast China and Northwest China

In the future, the 5 regional companies in Beijing, East China, Central China, South China, and Southwest China will be abolished and downgraded to regional general companies at the same level as those in Northeast and Northwest China. Some functions originally on the regional platforms will be taken back to the group headquarters, and the city companies under their jurisdiction may continue to be merged and streamlined.

Vanke's "5 + 2+2" organizational structure was implemented in October 2024, aiming to reduce the number of regional companies, cut management levels, achieve intensive management at the group level, and sink to the business front - line.

In 2024, the two rounds of organizational structure adjustments that Vanke underwent were all carried out in the above - mentioned direction. In March, the city companies in the South China region were merged, and more than a dozen city companies in Guangdong, Fujian, Hainan, and Guangxi were merged into 8. In October, the Northeast and Northwest regions were downgraded to regional general companies, and the original 7 regional companies were reduced to 5. At the same time, a development and operation headquarters was established at the group level to directly take over the Shanghai and Guangzhou - Foshan companies, further streamlining the number and functions of regional platforms.

It is reported that at the end of January 2025, there was a major reshuffle of Vanke's board of directors and the group's core management. Yu Liang, Zhu Jiusheng, and Zhu Xu collectively resigned. Shortly after Xin Jie from the major shareholder Shenzhen Metro took over as the chairman of the board, Vanke had been brewing a new round of organizational structure adjustment. It was originally planned to be completed in the first half of the year, but it was postponed due to some reasons.

This major adjustment of Vanke is actually not unexpected. On the one hand, mainstream real - estate enterprises including China Resources and China Merchants are currently reducing management levels.

During the original real - estate expansion period, regional platforms were established to decentralize power in investment, marketing, etc., to encourage each region to "run fast". After entering the market contraction period, the past radical practices are no longer applicable. Various powers of regional platforms have been taken back, but they still have to perform management duties in terms of rank, resulting in various phenomena of "mismanagement" and unequal rights and responsibilities. Adjustment is an inevitable step sooner or later.

On the other hand, since 2021, major real - estate enterprises have been "slimming down" and changing their pace, shifting from the original expansion and sinking to lower - tier cities to contraction and in - depth cultivation of key cities. As old projects are completed, the number of cities and projects actually deployed by real - estate enterprises has been decreasing, and the company's management structure also needs to be streamlined accordingly.

As Vanke's major organizational structure adjustment is imminent, the uncertainties for senior executives on Vanke's regional platforms are also increasing. Recently, two more long - term employees have left the company.

In June, Wang Boqun, a partner of Vanke's Central China Regional BG, ended his 16 - year career at Vanke. Recently, market rumors suggest that Yu Jiaxing, the former general manager of Shanghai Vanke's business department, has left Vanke and joined China Resources Land.

In the great transformation of the real - estate industry, both the company and individuals have to change.

Those in the real - estate industry feel the pressure brought by the downturn of the real - estate industry most deeply. What will the future be like? No one on this big ship can give a definite answer. All they can do is to steer the ship and row hard, face the waves head - on, and at the same time, use the power of the sea and waves to continue the next voyage.