zhang huarong has some important news to deliver. and it isn't good. times are tough and management has come to a decision. some workers will have their wages cut. others will be sacked. zhang: many of you are idle. but until now you've been paid for ose boring hours. by doing this you are ruining your precious future and development. i hope all of you understand this. reporter: it's a difficult step, but one that's becoming the norm as china's economy slows. hundreds of plants are already shuttered in and around huanxiang alone. and laid off workers are increasingly taking to the streets in violent protests. the police have responded with force. as the malaise deepens and stock markets plummet, the economic aftershocks are being felt around the globe. and it's forcing zhang huarong to make tough decisions in hopes of keeping the company in business. he started here 30 years ago as a migrant shoe salesman. china was largely an agrarian nation. how many shoes do you make per year? zhang: china produces eight million pairs of shoes per year domestically a