JD.com Inc. is planning significant increases in salaries for its staff, a major move for an company in China.
JD, which competes with ByteDance Ltd. and PDD Holdings Inc., plans to double the salaries of its workforce in sales, procurement and other “frontline” positions starting Jan. 1. Workers in JD’s retail positions are expected to receive an average salary increase of 20% and more, according to the company’s official announcement via its WeChat account.
JD.com spent about 25.9 billion yuan (~$3.2 billion) on human resources costs last quarter, according to filings . In an effort to entice consumers to spend during a shaky post-Covid-19 economic recovery, the company has adopted discounts and lower prices this year.
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JD, once China’s second-largest online retailer, has lost ground in recent years to new entrants like ByteDance’s Douyin in the world’s largest online . This month, JD.com founder Richard Liu encouraged staff to address serious issues within the company and called for changes in response to an internal challenge from an employee.
The company reported stronger-than-expected revenue growth of 1.7% in the previous quarter. However, growth remains weak as shoppers curb their spending. However, the e-commerce to gradually recover over the next year.
Source: bloomberg.com
