JD.com is preparing deep cuts to its workforce and rescinding some job offers as the Chinese e-commerce giant struggles to revive dwindling morale and rein in losses, people familiar with the matter said.
Alibaba Group Holding’s closest rival told managers that it is looking to reduce headcount across the company, cutting some teams by as much as half, one of the people said, citing an internal email. JD.com is reneging on some work contracts and offering affected college graduates token compensation of 5,000 yuan (US$745), the people said, asking not to be identified discussing a private matter. The Information earlier reported that, all told, JD.com could be slashing its workforce by as much as eight per cent.
The threat of firings has walloped morale and prompted many to explore employment elsewhere, according to the people. JD.com has come under increasing pressure from a more-diversified Alibaba as Chinese consumption succumbs to a decelerating economy, while upstart rivals, such as Pinduoduo, draw customers away. JD.com’s latest move mirrors internal overhauls by Tencent Holdings and Didi Chuxing, which were coming off their once-breakneck pace of growth.