Briefing: JD to cut 10% of executives in 2019

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消息称京东2019年将末位淘汰10%的高管 – Tencent Tech

What happened: Chinese e-commerce giant JD announced plans to cut 10% of its vice president or higher level executives who come at the bottom of the company’s performance evaluation mechanism in 2019. With a total employee of over 180,000, the company now has around 100 such executives, according to the report.

Why it’s important: Rumors about JD’s workforce cuts have been circulating since the end of last year. In November last year, JD was reported to be cutting between 10% to 15% of its workers, but the firm refuted the news. The current news is significant because it would be a rare case for the e-commerce site to launch a round of job cuts targeting high-level executives. The decision was made to solve various organizational problems existing in the US-listed company as well as to regain the entrepreneurial spirit, the source noted. The news comes as Chinese tech companies generally are controlling headcount.