【转】Phoenix's Ifeng may cut up to 40% of workforce: report
An Ifeng reporter at an exhibition in Beijing. (File photo/CFP)
Ifeng.com, a news website run by Hong Kong's Phoenix TV network, has announced a major cut to its workforce which may involve up to 40% of its staff, the Beijing Times reports.
CEO Liu Shuang announced the cuts through an internal email on Tuesday which said the website has been under tremendous pressure since its share price has been undervalued on the New York Stock Exchange and the company will streamline its labor costs to transform its business.
The email said the website will not develop the type of apps that users can only use to browse information. The company will control the number of its existing editors and integrate them into its mobile web-based services. It will also reduce its labor-intensive teams responsible for non-internet business. The website will abandon products that have not greatly contributed to the number of user visits, influence and liquidity. It will examine its workforce structure and reduce redundant positions, according to the email.
The cuts will reportedly affect ifeng's procurement, marketing and offline product marketing departments, though Liu has yet to announce the exact figures and compensation packages. Unconfirmed reports say the cut may involve up to 40% of the workforce and the website may use the N+3 compensation package often used by internet companies conducting layoffs.
An Ifeng employees said fraudulent overtime subsidies have contributed to the firm's financial woes. Many employees have been in the habit of applying for overtime pay even though they did not work extra hours because they knew the firm did not review their applications strictly.
The website's total revenue in the second quarter increased 2.9% year-on-year to 422.9 million yuan (US$66 million), of which its mobile advertising revenue increased 124.2% year-on-year. The website's net profit dropped 73.4% to 22.5 million yuan (US$3.5 million) over the period.
Similar types of web portals in China have been struggling on account of dwindling advertising revenue. Sina, one of the country's leading portals, saw its advertising revenue drop by US$$7.9 million during the second quarter. Sohu reported a US$28 million loss over the period, attributed to stagnant growth in its game business and overheads from its video-sharing website.
In February, Ifeng sought to bring in new revenue by acquiring a 46.9% stake in Beijing Yidian Wangju Science & Tech Co, a news aggregating service offering news feeds from multiple sources for users to customize and share.
Ifeng.com, a news website run by Hong Kong's Phoenix TV network, has announced a major cut to its workforce which may involve up to 40% of its staff, the Beijing Times reports.
CEO Liu Shuang announced the cuts through an internal email on Tuesday which said the website has been under tremendous pressure since its share price has been undervalued on the New York Stock Exchange and the company will streamline its labor costs to transform its business.
The email said the website will not develop the type of apps that users can only use to browse information. The company will control the number of its existing editors and integrate them into its mobile web-based services. It will also reduce its labor-intensive teams responsible for non-internet business. The website will abandon products that have not greatly contributed to the number of user visits, influence and liquidity. It will examine its workforce structure and reduce redundant positions, according to the email.
The cuts will reportedly affect ifeng's procurement, marketing and offline product marketing departments, though Liu has yet to announce the exact figures and compensation packages. Unconfirmed reports say the cut may involve up to 40% of the workforce and the website may use the N+3 compensation package often used by internet companies conducting layoffs.
An Ifeng employees said fraudulent overtime subsidies have contributed to the firm's financial woes. Many employees have been in the habit of applying for overtime pay even though they did not work extra hours because they knew the firm did not review their applications strictly.
The website's total revenue in the second quarter increased 2.9% year-on-year to 422.9 million yuan (US$66 million), of which its mobile advertising revenue increased 124.2% year-on-year. The website's net profit dropped 73.4% to 22.5 million yuan (US$3.5 million) over the period.
Similar types of web portals in China have been struggling on account of dwindling advertising revenue. Sina, one of the country's leading portals, saw its advertising revenue drop by US$$7.9 million during the second quarter. Sohu reported a US$28 million loss over the period, attributed to stagnant growth in its game business and overheads from its video-sharing website.
In February, Ifeng sought to bring in new revenue by acquiring a 46.9% stake in Beijing Yidian Wangju Science & Tech Co, a news aggregating service offering news feeds from multiple sources for users to customize and share.
