Chinese language social e-commerce app Xiaohongshu, often known as China’s reply to Instagram, has kicked off a spherical of layoffs, a supply acquainted with the matter stated, as the corporate joined different web corporations in retrenching.
The layoffs have been first reported on Thursday by native media retailers reminiscent of Sina Expertise, which cited social media postings by staff. Sina Expertise additionally stated the layoffs affected a number of departments of the corporate in Beijing and Shanghai.
A supply near the corporate stated the layoffs impacted lower than 10 % of its workforce and have been a part of its regular efficiency evaluate course of, including that affected staff got a buffer interval.
Xiaohongshu didn’t instantly reply to a request for remark.
Based in 2013, Xiaohongshu has greater than 2,000 staff throughout a number of cities in China. Its title interprets to “Little Purple Guide.”
The Shanghai-based firm, whose backers embrace Tencent Holdings, Alibaba Group and Singaporean state investor Temasek Holdings, accomplished a $500 million fundraising spherical in November that valued it at as a lot as $20 billion.
Its job-cutting train follows such strikes by different Chinese language tech giants, together with Alibaba and Tencent.
Reuters reported final month, citing sources, that Alibaba and Tencent would collectively minimize tens of hundreds of jobs this 12 months in one in every of their largest rounds of layoffs as they tried to deal with a sweeping regulatory crackdown.
New laws have banned a few of their previous enterprise practices and restricted development alternatives.
Xiaohongshu has additionally been focused by Chinese language regulators.
In November it was known as out by authorities for extreme assortment of non-public data. In January it was fined 300,000 yuan ($47,000) after state media reported it had did not cease customers from sharing lewd content material that includes minors.
By Josh Ye; Editors: Brenda Goh and Bradley Perrett
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