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Chinese e-commerce giant JD.com to cut pay for 2,000 senior managers amid efforts to boost housing, education benefits for workers
- The salary cuts, which will start next year, form part of JD.com’s efforts to boost housing and education benefits to rank-and-file employees
- JD.com will establish a US$1.4 billion housing fund for all employees of the group and its subsidiaries
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Ben Jiangin Beijing
Chinese e-commerce giant JD.com will slash the salaries of around 2,000 senior managers by up to 20 per cent, as part of efforts to boost housing and education benefits for its rank-and-file employees, company founder Richard Liu Qiangdong announced in an internal email on Tuesday.
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JD.com will establish a 10 billion yuan (US$1.4 billion) housing fund for all employees of the group and its subsidiaries, according to the email, which was seen by the South China Morning Post and its content confirmed by a company spokeswoman.
The Beijing-based firm, which is listed on both the Nasdaq and Hong Kong stock markets, will also start paying social security for all of the nearly 150,000 personnel at Deppon, a local courier service that was acquired this year by JD Logistics.
Liu, who stepped down as JD.com’s chief executive in April, wrote that he will personally donate 100 million yuan, which will be matched by the company and its subsidiaries, to a relief fund that will provide for the offspring of JD.com employees in the event of their death or when they get injured at work or outside work.
“This is to ensure our JD brothers have our solid backing and ensure that under no circumstances will their family return to poverty,” Liu wrote, signing the internal email as “your brother Dong”.
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The senior managers’ salary cuts, which range from 10 per cent to 20 per cent, will start next year, according to the email.
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