China's fourth largest city will dismiss at least 300,000 more employees as part of the national campaign to break the "iron rice bowl" policy of guaranteed jobs, an official newspaper said Sunday.

The Economic Reference said the northeastern city of Shenyang, with a population of about 2.4 million, had previously fired 60,000 "redundant workers."Of the 60,000 workers who were dismissed, 9,500 took early retirement at half salary, 13,000 women took extended maternity leaves at 70 percent of their original pay and about 20,000 people were given newly created jobs, mainly in the service industry, the newspaper said.

More than 300,000 others will be laid off, the report said, but it gave no time frame.