Jinri Toutiao parent company Bytedance has slashed its employees’ Chinese New Year bonuses, as it faces challenges including increased competition and an economic downturn.

Apart from awarding annual bonuses in April, Bytedance typically distributes special “red packets,” also known as hongbao, before Spring Festival as an additional benefit to its employees. Red packets are cash gifts given out around the holiday season in China as a gesture of good fortune.

Employees who have worked at the company for more than three years were this year given RMB 3,600 (around $540) red packets, down from last year’s RMB 16,000, according to Chinese media. Staff members who had worked at Bytedance for between one and three years were last year given RMB 6,000, while they receive RMB 2,600 this year.

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Jill Shen

Jill Shen is Shanghai-based technology reporter. She covers Chinese mobility, autonomous vehicles, and electric cars. Connect with her via e-mail: jill.shen@technode.com or Twitter: @yushan_shen