From the front of the stage to the behind the scenes, and then to the front of the stage, Jingdong founder Liu Qiangdong is implementing a new round of reforms inside.
Surging news reporters learned that on November 20, Liu Qiangdong, the current chairman of the Board of directors of Jingdong Group, accessed in the form of video in the middle and high-level meeting and announced that 10% of vice president level and above executives would be eliminated at the end of this year.
However, the policy is not new this year, but has been implemented in 2019.
According to Latepost, in the meeting, Liu Qiangdong criticized some of JD.com's management, saying that the executives had deviated from the core of the business strategy, namely cost, efficiency and experience, and further refined the experience into three aspects: product, price and service.
In addition, on November 23, Jingdong Retail opened a large-scale personnel adjustment, a number of president positions changed, the most important structural adjustment is to split the original 3C home appliance business group into home appliance business group and computer communication business group.
It is understood that the business group is one of the most influential business groups within Jingdong Retail, and the revenue of Jingdong retail accounted for nearly 60% in the third quarter of this year.
Prior to November 22, Liu Qiangdong's internal release of the full letter caused external concern.
Liu Qiangdong said in the letter that it was decided that from January 1, 2023, all senior managers above the deputy director of Jingdong Group and the corresponding P/T series will have their cash salaries reduced by 10%-20%, and the higher the position, the more they will fall.
Liu Qiangdong said that the treatment of employees and executives should be "one up and one down" : on the one hand, gradually transform outsourced employees into its own employees, and ensure that every employee of Deppon can have "old care and medical treatment."
At the same time, to set up a "housing security fund" for all logistics, customer service and other grass-roots employees, including all Deppon employees, Jingdong will invest tens of billions of dollars in the next decade to provide interest-free loans for grass-roots employees.
Third, Liu Qiangdong himself donated another 100 million yuan, Jingdong Group and various business groups will also take out a certain proportion of cash to greatly expand the scale of the "employee children Relief Fund".
In addition, in order to improve the welfare benefits of grass-roots employees and minimize the pressure on the company, since January 1, 2023, the cash compensation of senior executives of Jingdong Group has been reduced by 10%-20%, and the higher the position, the more the reduction.
In the view of the industry, Liu Qiangdong has recently taken a number of intensive measures, indicating that it still occupies a dominant position within Jingdong.
On April 7 this year, Jingdong Group announced that Xu Lei, president of Jingdong Group, will be the CEO of Jingdong Group, responsible for daily operations and management, and report to Liu Qiangdong, chairman of the Board of Directors of Jingdong Group;
Liu Qiangdong will devote more energy to long-term strategic design, major strategic decision-making and deployment, young leading talents training and rural revitalization.
Previously, on November 18, Jingdong's third-quarter earnings report showed that total revenue was 243.5 billion yuan, an increase of 11.4%.Net income attributable to common shareholders was RMB6 billion, compared with a net loss of RMB2.8 billion in the same period last year;
Non-gaap net income attributable to common shareholders was $10 billion, compared with $5 billion in the same period last year.
In the earnings conference call, Xu Lei said that Jingdong's profits this year are mainly reflected in the "cost reduction" in the "cost reduction", and next year and next year will focus on "efficiency".
"What can be confirmed is that despite the difficulties caused by the epidemic this year, the future should be positive and signs of recovery have begun to appear." But it is uncertain how fast the recovery will be. It's more important for management to stick to the current strategic direction and stay engaged."
As of the close of November 24, JD Hong Kong shares (09618.HK) closed at HK $200, down 2.06%.
