JD.Com actively promotes China’s common prosperity after Alibaba, Tencent
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JD.Com, Inc (NASDAQ: JD) cut the salaries of about 2,000 managers by 10% – 20% and transferred part of those savings to a $1.4 billion employee benefits fund, making China’s No. Quoc is in line with Xi Jinping’s “common prosperity” wealth-sharing campaign.
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JD.com founder Richard Liu will donate 100 million yuan ($14 million) of his own money to employee welfare, Bloomberg report.
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The Alibaba Group Co., Ltd (NYSE: TORTOISE) rival will also set up a 10 billion yuan fund to provide employees with zero-interest home loans.
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“Employee benefits plan is now being improved, focusing on frontline workers,” Reuters report. The company has 540,000 employees.
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In addition to JD, senior executives in China’s $58 trillion financial system also face additional pay cuts as companies move from investment banks to mutual funds. . consider options to adhere to Xi’s mantra.
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“I hope this move can realize the dream of securing a home for all employees who have worked for more than five years, including our courier and customer service brethren.” Liu stated in an internal memo.
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Liu stepped down as CEO of JD this year, joining the exodus of Chinese tech moguls following the internet crackdown to focus on longer-term strategies while also advising management. younger.
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He will also contribute to the revitalization of rural China, a priority of Xi Jinping.
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Last year, Alibaba and Tencent Co., Ltd (OTC: TCEHY) committed to spending billions of dong to support this effort. At the same time, state-owned investment banks have taken pay cuts and delayed bonus payments this year.
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Price action: JD stock closed down 1.58% at $51.67 on Tuesday’s final check.
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