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.
Liu also plans to personally donate 100 million yuan to a fund that help children of JD employees should anything happen to their parents, said the letter circulated online and later confirmed by JD.com as authentic.
“The employee benefits plan is currently being improved, with a focus on front-line staff,” a JD representative told Reuters. The company has 540,000 employees.
Alibaba Group 9988.HK and Tencent Holdings 0700.HK last year pledged to spend billions to support the effort, while state-owned investment banks have implemented pay cuts and delayed bonus payments this year.
JD has been hit by a slowing economy and flagging consumer spending this year, though it last week posted an 11.4% rise in third-quarter revenue and said it was seeing signs of a demand recovery as China adjusted it zero-COVID policy.