In a surprising move, Chinese e-commerce behemoth JD.com Inc (NASDAQ:JD) has disclosed plans for significant salary increments for its workforce in 2024, notwithstanding a volatile Chinese consumer market.

What Happened: JD.com is set to nearly double the fixed salaries of its procurement, sales, and other “front-line staff” from the start of 2024, Bloomberg report. The company is in stiff competition with rivals such as Alibaba Group Holding Ltd (NYSE:BABA) and ByteDance Ltd. JD’s retail employees are slated to receive average pay increases exceeding 20%, as disclosed in a company statement on its official WeChat account.

JD.com, once the second-largest online retailer in China by value, has been facing competition from emerging rivals like ByteDance’s Douyin in the world’s largest internet market. JD.com’s founder, Richard Liu, recently called on the company’s employees to address internal issues and push for change.

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The company expended roughly 25.9 billion yuan ($3.6 billion) on HR costs in the past quarter, according to company filings. This year, JD.com rolled out discounts and cut prices to spur consumer spending amid a fluctuating post-pandemic economic recovery.

Despite a better-than-anticipated 1.7% revenue surge in the last quarter, growth has been slow, with consumers continuing to limit their spending. The e-commerce sector is expected to gradually recover in the coming year.

Why It Matters: This move comes on the heels of JD.com’s founder, Richard Liu, acknowledging the need for significant changes within the company. Liu’s call for a transformation was in response to an employee’s critique highlighting issues such as inadequate merchant support and high-priced items. Liu agreed with the critique and emphasized the need for change within the company.

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