Tom Initiates Large-scale Layoffs
Sina Tech, 6/29/11
Chinese-language media conglomerate Tom Group (2383.HK) initiated another round of large-scale layoffs yesterday, offering downsized employees N+1 severance packages plus an additional RMB 2,000. The company is reportedly working on plans to dissolve its website division.
Most heavily affected in this round of layoffs was Tom Online's Sports channel, the company's largest channel and one of only three channels that Tom Online operates itself. According to a source inside the company, the Sports channel employed between 60 and 70 people before the layoffs, and now employs fewer than 20. At least 70% of the channel's employees were laid off.
Tom Online's Entertainment and Automobiles channels were affected less severely, as Tom Online previously had a round of layoffs at the Entertainment channel last year, while the Automobiles channel team is relatively small. Some reports, however, say that the Automobiles channel was dissolved completely. The company will reportedly hold a meeting for laid-off employees today.
Wang Xin, GM of Tom Online's website division, left the company on the eve of the layoffs. Several other senior managers at the director level reportedly left at the same time.
Editor's Note: For more information on this topic, please see "Rumor: Tom Merges Site Channels, Downsizing," MD 11/02/10 issue.
Keywords: portal Wang Xin Internet sports Tom Online Tom Group 2383.HK HR automobile
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