JD.COM Inc. said yesterday it would cut the salaries of its senior managers by 10-20% next year to help pay for improved benefits for other staff. The company, one of China’s largest e-commerce giants, said the decision will affect the salaries of around 2,000 managers, with steeper cuts for higher-level executives. The cuts, expected to take affect from 2023, would “improve ground-level employees’ benefits” and “alleviate pressure on the company,” JD said in an internal letter. A JD.com spokesperson confirmed to Reuters and The Wall Street Journal that the letter was authentic. “The employee benefits improvement plan is currently being promoted, with a focus on front-line staff,” the spokesperson said in a statement. JD.com said executive salaries could recover to their current levels if the company’s earnings resume high growth in two years. Bloomberg quoted a person familiar with the matter as saying that JD.com’s billionaire founder Richard Liu will donate 100 million yuan (US$14 million) of his own money toward staff welfare. JD.com, China’s second-largest online retailer after Alibaba Group Holding Ltd., will set aside a 10 billion yuan fund to set up a housing security fund for employees, including at recently-acquired logistics service Deppon Logistics. JD.com will also expand social security coverage to more workers and contractors, it said. JD.com posted an 11.4% rise in third-quarter revenue Friday, beating analysts’ estimates as COVID-19 lockdowns in China led more consumers to shop online. JD.com chief executive Xu Lei said on a call with analysts Friday that the company has seen signs of consumption recovery as China adjusted it zero-COVID policy. “The worst moment is basically over,” he said. (SD-Agencies) |