The purpose of this study is to analyze the recent development of Chinese vocational colleges from two perspectives: the adoption of employability as a new institutional mission and organizational changes in six areas. The analysis is based on a multiple-case study. The analytical frameworks are developed from sociological theory and organizational theory. This study argues that vocational colleges in China are experiencing substantial transformations. At the macro level, they are transforming from a social institution to industry under the neoliberal argument for globalization. Colleges adopt employability as their new mission. At the micro level, there are considerable changes under the influence of the new mission, in terms of program goal, program development, curriculum development, dominant pedagogy, faculty development, and internal management. The changes fit the rhetoric of employability as a core competency. There is a tendency that Chinese vocational higher education institutions will degenerate into training organizations for employment.