Reports have recently surfaced in Chinese media alleging that local e-commerce and service platform Meituan has launched a series of layoffs covering its online ride-sharing service, its grocery e-commerce platform Youxuan and its hotel and travel division.
“All the conference rooms were booked by the human resources department last Friday. Two more rounds of layoffs will begin soon. The whole process will be completed by the end of April,” Caixin reported Monday, quoting Meituan
According to the company’s financial report, its revenue was 179.1 billion yuan ($28.1 billion) in 2021, up 56.0 percent year-on-year. Net loss and adjusted net loss reached 23.5 billion yuan and 15.6 billion yuan, respectively, mainly due to poor performance of new businesses. The financial report shows that the new venture lost 38.4 billion yuan last year, and the operating loss rate increased 36.6 percent year-on-year.
Previously, due to the unsatisfactory performance of its community group purchasing industry, rumors of layoffs at Meituan
In July last year, national carpooling giant Didi’s 25 apps were pulled from digital shelves, leading to fierce competition among new players. Meituan
The hotel and travel division remains the biggest source of profit for Meituan
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Recently, many Chinese Internet companies have reportedly made internal layoffs. The Cyberspace Administration of China (CAC) said on April 8 that, based on interviews with 12 industry companies, including Tencent