Chinese e-commerce mammoth JD.com is cutting the salaries of more than 2,000 senior leaders by 10% and up to 20%. 

Founder Richard Liu issued a letter on November 22 that was first leaked online and later confirmed by a company spokesperson. Higher-level executives will face more reductions. The measure is to take effect on January 1, 2023.

Liu said the pay cut will enhance benefits to more than 540,000 of its employees and reduce financial strain. The company is giving 10 billion yuan, or $1.4 billion, to a business program that offers employees who have worked for the company for at least five years interest-free loans for home purchases.

JD.com tells Reuters that the current benefits will focus on front-line workers, such as delivery drivers and other supply chain employees. It will also provide social insurance coverage to more than 100,000 employees at a logistical company it purchased in July.

According to Nikkei Asia, JD will eventually offer medical insurance to all of its workforce, including contractors who transition to full-time positions.

The Chinese Jeff Bezos is himself pledging 100 million yuan, almost $14 million, to a fund that would help the children of JD employees should anything happen to their parents.

In the letter, Liu promises to reinstate the previous compensation if JD.com returns to a high growth level in the next two years.

Reuters says a sluggish economy and declining consumer spending this year have plagued the Beijing-based e-commerce firm. On November 18, it reported an 11.4% rise in third-quarter revenue, which prompted chief executive Xu Lei to say the worst moment is basically over.

The pay cut’s announcement coincides with Beijing’s recent reiteration of “common prosperity,” which aims to reduce the wealth gap by redistributing more of China’s wealth to the underprivileged.

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