China‘s Tencent Holdings has advised employees it’s going to now not assure them a pay elevate upon promotion, based on an inner letter seen by Reuters, because it opinions its wage coverage amid a wider cost-cutting drive.
The Chinese language social media and gaming big advised its workers of the coverage change on Tuesday, saying the choice was taken as a part of a yearly overview in consideration of the “firm’s operation plan and the exterior atmosphere.”
However it mentioned the corporate would nonetheless conduct an annual wage overview to contemplate a person’s contribution and efficiency.
Tencent, which declined to touch upon Wednesday, advised employees in 2020 it could now not assure an annual wage rise.
Its newest coverage change displays the altering circumstances of China’s know-how giants, as soon as among the many quickest rising Chinese language companies and wanted employers however now hit arduous by a bruising regulatory crackdown and a slowing economic system.
Tencent, China’s most useful firm, reported quarterly earnings final month exhibiting revenue halved from a yr earlier and revenues stagnated, its worst efficiency because it went public in 2004.
Founder and Chief Govt Pony Ma advised analysts the corporate had applied price management measures and scaled again non-core companies within the first quarter. He mentioned it was seeking to “obtain a extra optimised price construction going ahead”.
It has shut its Penguin Esports unit. Reuters reported earlier this yr that Tencent and peer Alibaba Group deliberate to make quite a few job cuts.
The newest Tencent wage coverage change, first reported by native media on Wednesday, was some of the mentioned subjects on the Maimai profession portal, China’s equal of Linkedin.
“High quality candidates will now weigh the steadiness of a Tencent job,” mentioned one consumer on Maimai, who used a pseudonym and mentioned he was a Tencent worker.
Ma precipitated a stir on Chinese language social media just lately after he reposted an article on China’s economic system, breaking his standard silence on an more and more delicate matter.
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