JD.com Group-Buying Arm Reportedly Plans to Lay Off 10-15% of Staff
Jingxi, the community and discount purchasing arm of Chinese e-commerce giant JD.com, is reportedly planning to lay off 10-15% of its staff members, according to a Monday report by Sina Tech.
In 2019, JD.com launched Jingxi, a social e-commerce platform that focuses on small-town and rural markets, to deal with the booming business of Pinduoduo. Jingxi Pinpin is a community group buying platform under Jingxi, launched on January 1, 2019. Jingxi Pinpin started business in 13 cities on the very first day, then expanded to nearly 80 prefecture-level cities in nearly four months.
With the help of JD.com‘s strong supply chains, Jingxi Pinpin provides quality products in multiple categories, and can meet the needs of different consumers in line with local conditions. It also employs technology for convenient and easy warehousing, packaging and placing orders. Jingxi made the adjustments for more concentrated strategies and regions. It intends to build up capabilities with supply chain in the small-town and rural markets.
Both Alibaba and Tencent have also announced layoffs lately. Alibaba‘s MMC business group is planning layoffs of about 20%. Several business groups of Tencent have been downsizing since the end of last year, with CSIG (Cloud and Smart Industries Group) and PCG (Platform and Content Group) being the main ones with larger layoffs, while IEG (Interactive Entertainment Group) and other groups with smaller layoffs or no action for the time being.
SEE ALSO: Alibaba to Start Massive Layoffs, Sources Say
Regarding community group buying, there was news in February this year that the Meituan‘s Youxuan Group was laying off staff. In March this year, it was reported that Alibaba would optimize local life businesses including Ele.me and Koubei, Fliggy, Hema Fresh, Taocaicai and other businesses.