The recent layoffs within major Chinese internet companies are getting worse, according to a report by domestic media outlet Chinafund on Monday. A number of web users certified as employees at JD.com, a leading e-commerce platform in China, posted that many business lines of the company are laying off employees. A firm spokesperson responded that this round of layoffs represents the normal optimization of its business divisions, while the main business is still developing smoothly.
According to details revealed in online posts, the HR department at JD.com chose to name the layoff letter sent to many employees a “graduation notice.” The documents included information on how to handle social security and personnel files after leaving the company, and what procedures should be taken to apply for background checks and demission certificates.
According to a document circuited on the web, the layoffs cover a wide range of business lines, including Jingxi, JD Worldwide, JD Retail, JD Tech and other sectors. The ratio of layoffs in most divisions is between 10 and 30 percent, while layoffs for Jingxi within the Guangdong division are as high as 100 percent. As for the online document, the aforementioned JD.com spokesperson said that the company was not aware of it, so it was unable to issue an official comment.
Meanwhile, according to a report by Jiemian News, many employees have been interviewed by their department leaders and HR personel since March 21. They were asked to leave the company on March 31. Due to the failure to give 30 days’ notice in advance, JD.com issued an “N+1” compensation plan.
Some employees are still in negotiations with the company. Many reported that they had not yet reached an agreement with the company on such issues as “whether the company should pay their social security until April”; “what proportion of wages should be converted for overtime, leave adjustment and unused annual leave”; and “the promised company stock has not been exercised.”
On March 10 this year, JD.com released its financial report for 2021 and the fourth quarter. The report shows that net income in 2021 reached 951.6 billion yuan ($149.39 billion), a year-on-year increase of 27.6%. Among them, the net income in the fourth quarter was 275.9 billion yuan, a year-on-year increase of 23.0%.
However, in terms of net profit, in Q4, 2022, JD.com lost 5.2 billion yuan, compared with the net income of 24.3 billion yuan in the same period last year. The loss in the fourth quarter also attributed to a net loss of 3.6 billion yuan in JD.com in 2021.