China’s JD.com said on Tuesday it would cut the salaries of more than 2,000 senior managers by 10% to 20% next year to help pay for improved benefits for other staff amid the government’s “common prosperity” drive to reduce income inequality.
The e-commerce giant plans to allocate 10 billion yuan ($1.40 billion) for a fund to assist employees of JD and recently-acquired courier firm Deppon Logistics with buying homes, according to an email to staff signed by JD founder and chairman Richard Liu.
Liu also plans to personally donate 100 million yuan to a fund that helps the children of JD employees should anything happen to their parents, said the letter circulated online and later confirmed by JD.com as authentic.
Liu said the move would put short-term financial pressure on JD, leading to the decision to cut the salaries of more than 2,000 senior executives.
Sources: https://saltwire.com/
