JD.com announced to its employees on November 22 that it planned to reduce the salaries of its senior executives by 10% to 20%. The Chinese giantecommerce look for closing the gap with its lowest paid employees in order to meet the expectations of Beijing and its policy of “common prosperity”. The objective of this, reinstated last year by Xi Jinpingthe president of the Chinais of reduce income inequality that threaten the Chinese economy and the legitimacy of Communist Party rule.
10 to 20% less salary
More than 2,000 employees are affected by the JD.com salary restructuring plan that will begin January 1, 2023. In an email addressed to its teams and consulted by Nikkei AsiaRichard Liu, founder and former CEO of the company writes that he hopes that senior executives understand and support the decision ! I’m sorry for the over 2,000 people affected and I apologize to you “. The billionaire, still chairman of the board of directors of JD.com, points out that ” if the group’s performance returns to a high level of growth in the next two years, it will be possible to restore the remuneration of each “.
In addition to these budget cuts, the Beijing-based company plans to inject 10 billion yuanthe equivalent of $1.4 billion, in a fund intended to help its employees to buy a house. Richard Liu also plans to donate 100 million yuan, about $14 million, to help the children of its staff if anything were to happen to their parents. Since its recent acquisition of the logistics company Deppon Logistics, JD.com recognizes 540,000 employees.
A JD.com spokesperson confirmed the authenticity of the email to Nikkei Asia and stated that ” the employee benefits improvement plan is being redesigned ” and ” the focus was on front-line staff “. According to the words of Richard Liu, these last should soon have access to health insurance.
Beijing imposes a policy of “common prosperity”
JD.com is not the first Chinese company in the tech sector to have to comply with Beijing’s demands in the context of “common prosperity”. In September 2021, Alibaba announced an investment of 100 billion yuan$14 billion, over five years.
Participation in collective solidarity and the project of “common prosperity” which follows Tencent’s initiative in August 2021. The tech juggernaut behind the WeChat super app has promised to double the funds intended for social actions to bring them to 14 billion dollars.