Reports have emerged recently alleging major staff layoffs within Chinese fresh grocery e-commerce firm Dingdong Macai. The company has responded to the news, assuring that all business is in normal operation, and that minor personnel changes are due to the adjustment of normal organizational resources.
One employee of Dingdong Maicai revealed on domestic job-seeking platform Maimai that the company has started to lay off employees, with 50% from the procurement unit, 30% from the algorithm team, 30% from the operations division and 10%-20% from the recruitment department. After this round of layoffs, there will be another one at the end of the first quarter of 2022.
In fact, rumors suggested that employees of the front warehouse service station were forced to take a professional break. In addition, due to their failure to reach performance requirements, other employees would be fired.
Founded in May 2017, Dingdong Maicai provides users with fresh groceries, delivered to their door “within 29 minutes,” according to the firm. It was listed on the NYSE in June 2021.
In November 2021, the company issued a third-quarter financial report showing mixed results. Revenue in the third quarter of 2021 was 6.19 billion yuan ($960 million), a year-on-year increase of 111%. However, net losses were as high as 2.01 billion yuan, compared with 829 million yuan in the same period of 2020.
In fact, in addition to layoffs and cost management, company founder Liang Changlin shared the latest development ideas in December 2021. He said that the company used to focus on cost performance, but now it should emphasize better quality.