On November 22nd, Liu Qiangdong, the founder and chairman of the board of directors of JD Group, issued a letter to all JD. For all senior managers above the P/T sequence, the cash salary will be reduced by 10%-20%, and the higher the position, the more the reduction.
Not only that, but according to a late LatePost report, by the end of this year, JD.com will eliminate 10% of executives above the vice president level.
On November 20, at the semi-annual business management training meeting held by Jingdong, Liu Qiangdong, chairman of the board of directors of Jingdong Group, who is in Hong Kong, made a video connection during the meeting, and his speech lasted for more than three hours. Liu Qiangdong said that the problems he saw in some executives include: incompetence, a mismatch between values and the group, low organizational efficiency, and slow business advancement. Criticize the retail business executives by name, saying that the executives have deviated from the core of the business strategy, namely cost, efficiency, and experience, and further refined the experience into three aspects: product, price, and service.
Liu Qiangdong also said that when he was listening to the strategy meeting, he felt that "the executives talked too much about fancy stories, but they talked too little about cost, efficiency, and experience. If they don't have enough grasp of such core strategies, it will be difficult to lead the team. Go for the long run.
Liu Qiangdong also announced at the meeting that by the end of this year, 10% of executives above the vice president level will be eliminated at the end of the year.
Jingdong’s current core business is retail, logistics, and technology, and other businesses include health, Jingxi, international, smart industry development (providing solutions such as warehouses and logistics parks), industrial products (industrial procurement platform), and Allianz Insurance. According to JD.com’s 2021 annual report, Liu Qiangdong owns 13.8% of JD.com’s shares and 76.1% of the voting rights.