Home / News / World /  This company has slashed salaries 10-20% for 2,000 managers

JD.com Inc. is slashing salaries for about 2,000 managers by 10% to 20% and diverting some of the savings toward a raft of employee benefits, a person familiar with the matter said.

Billionaire JD.com founder Richard Liu will donate 100 million yuan ($14 million) of his own money toward staff welfare, the person said, asking not to be identified because the moves haven’t been announced. China’s largest online retailer after Alibaba Group Holding Ltd. will set up a 10 billion yuan fund intended to help employees, including at recently-acquired logistics service Deppon.

JD’s decision comes days after Xi Jinping reiterated a nationwide drive toward “common prosperity," a concept that’s pushed tech billionaires and cash-rich companies to set up programs to distribute wealth. The move was first reported by Chinese online media, citing an internal memo.

Liu stepped down this year as chief executive officer of China’s No. 2 online retailer, joining tech tycoons that exited top management roles after Beijing’s sweeping internet-sector crackdown. The entrepreneur will focus on longer-term strategies while mentoring younger management, JD said at the time. He would also contribute to the revitalization of rural China, JD said, a priority of Xi’s agenda.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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