Short video platform Kuaishou is laying off 30% of its staff, beginning with individuals in the company’s international business division, according to a report from Sina. The reorganization is taking place at a time when major internet companies in China are seeking ways to cut costs and reverse losses.
The layoffs were mainly for mid-level employees with an annual salary of RMB 1 million (USD 157,000) or above, Sina reported on Monday, citing a post on social media platform Maimai. Kuaishou did not respond to KrASIA’s request for comments.
The downsizing comes after the social video giant posted an RMB 7.1 billion (USD 1.1 billion) net loss for the third quarter. CEO Cheng Yixiao said during the earnings call that Kuaishou will cut costs in the immediate future.
Kuaishou is China’s second largest short video platform. It has been aggressively expanding its overseas operation over the past four years to compete with its biggest rival, ByteDance, which created the global sensation TikTok. Kuaishou reportedly earmarked USD 1 billion for user acquisition outside China, Chinese media LatePost reported in June.
Meanwhile, Kuaishou has been one of the worst hit entities in the sweeping regulatory crackdown of Chinese internet companies. Its share price has shrunk nearly 80% from its highest point after going public in February. This has dragged its shareholder Baidu into the red during Q3 as well.
Kuaishou’s downsizing is part of a larger wave of layoffs in China’s internet industry. Last week, iQiyi laid off between 20% and 40% of its staff, according to Yicai. The company posted a mounting loss to the tune of RMB 1.7 billion (USD 268.4 million) in Q3.
ByteDance also reportedly laid off employees of its real estate listings business, Xingfuli, Caijing reported last week.