Lately, reviews of layoffs at China’s main know-how corporations have often emerged on home social media platforms. On Thursday afternoon, life-style sharing web site Xiaohongshu was reported to be implementing main employees cuts, inflicting a heated dialogue. As of this afternoon, the agency has not but issued an official response concerning the matter.
In keeping with home media outlet Sina Tech, many Xiaohongshu workers broke the information on Maimai, knowledgeable on-line networking platform, that they’d out of the blue been knowledgeable of their nonnegotiable final day of labor. The compensation technique for layoffs is “N+1” severance cost, however the laid-off workers are barred from the corporate’s year-end bonus. Xiaohongshu normally points benefit and performance-based year-end bonuses on the finish of April yearly.
Some workers of Xiaohongshu revealed that the general layoffs have been 20%, and that each one departments have been affected, with extra contemporary graduates and probationary workers affected. When it comes to areas, the layoffs have affected workers on the agency’s Beijing and Shanghai branches.
Nevertheless, some additionally say that the employees cuts characterize regular group optimization, or elimination of the least competent workers. After this, the corporate will begin recruitment, however the quantity won’t be giant. One job seeker revealed that they’d handed the interview, however was then instructed that there was no headcount, whereas one other job seeker stated that just a few days in the past, they’d acquired a recruitment name from a Xiaohongshu headhunter.
For the reason that starting of this yr, many reviews have emerged that Xiaohongshu has adjusted its organizational construction. Earlier, it was reported that the original community department and e-commerce department would be merged into a new unit.
Xiaohongshu is within the stage of making ready for a public itemizing, which has been a closely-followed subject. In October of final yr, it was reported that Xiaohongshu was contemplating altering its itemizing location from the U.S. to Hong Kong, conducting a Hong Kong IPO with a scale of a minimum of $500 million. Concerning this matter, Xiaohongshu responded that it has no clear IPO plan.