China aims to lay off five to six million state workers over the next two to three years as part of efforts to curb industrial overcapacity and pollution, Beijing's boldest retrenchment program in almost two decades. China's leadership will spend nearly $23 billion to cover layoffs in just the coal and steel sectors in the next two to three years. The overall figure is likely to rise as closures spread to other industries and even more funding will be required to handle the debt left behind by "zombie" state firms. The term refers to companies that have shut down some of their operations but keep staff on their rolls since local governments are worried about the social and economic impact of bankruptcies and unemployment. Shutting down "zombie firms" has been identified as one of the government's priorities this year.
