CEO Morning Brief Preparing Big Pay Hikes Next Year With Uncertain Chinese Consumption

Publish date: Fri, 29 Dec 2023, 08:48 AM
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TheEdge CEO Morning Brief

(Dec 28): Inc plans sweeping salary increases for its workforce next year, a major move for an e-commerce company struggling with intense competition and uncertain Chinese consumption in 2024.

JD, which like Alibaba Group Holding Ltd is grappling with hard-charging rivals ByteDance Ltd and PDD Holdings Inc, will nearly double the fixed salaries it pays to procurement, sales and other “front-line staff” starting Jan 1. JD retail staff will get 20%-plus pay hikes on average, the company said in a one-line statement on its official WeChat account.

Once China’s No 2 online retailer by value, JD in recent years has ceded ground to newcomers such as ByteDance’s Douyin in the world’s largest internet market. This month, founder Richard Liu urged staff to address deep-seated issues within the company, calling for change in a response to an employee’s internal post. spent some 25.9 billion yuan (RM16.88 billion) on human resource costs last quarter, according to company filings. It has adopted discounts and lower prices this year to try and entice consumers to spend during a choppy post-Covid economic recovery.

The company posted a stronger-than-expected 1.7% revenue rise last quarter, but growth remains anemic as shoppers tighten their belts. The e-commerce arena is expected to recover gradually next year.

Source: TheEdge - 29 Dec 2023

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