According to people familiar with the matter, Gaopeng, the joint-force of Groupon and Tencent in China, has fired one thirds of its Chinese staff (including both execs and rank and file employees) while shutting down nearly 50% to 80% of its China branch offices. Gaopeng former and present General Manager pointed out that the significant downsize was resulted from Tencent’s delay in funding the joint-venture.

Actually, Gaopeng was seeing tough cash problem just couple months of its debut in China due to rapid expansion and management infighting, managers at the company disclosed.

Ouyang Yun, chief operating officer of Gaopeng, once said during an interview that the company had hired 3,000 employees and expanded to 50 cities. While last week managers at Gaopeng were told to cut down headcount to 2000 and between 20 and 41 branch offices would be closed due to money shortage.

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Ben Jiang

Listener of startups, writer on tech. Maker of things, dreamer by choice.