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Pinduoduo Faces Scrutiny As Employee Dies Working Past Midnight

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Pinduoduo Faces Scrutiny As Employee Dies Working Past Midnight

Pinduduo Inc (NASDAQ: PDD) is under scrutiny after an employee died after working past midnight last week, Bloomberg reported Monday.

What Happened: The company faced criticism online after it disclosed the death of the employee on Monday, according to Bloomberg.

A hashtag related to the incident reportedly drew 150 million views on Sina Weibo, a service similar to Twitter Inc’s (NASDAQ: TWTR) platform run by Sina Corporation (NASDAQ: SINA).

Why It Matters: The grueling schedule is locally known as 996 — from 9 a.m. to 9 p.m., six days a week, not including overtime — has been endorsed by tech leaders in China such as Alibaba Group Holding Ltd (NYSE: BABA) founder Jack Ma and JD.com, Inc (NASDAQ: JD) CEO Richard Liu, noted Bloomberg.

The backlash against Pinduduo comes at a time when China is stepping up regulation of its tech companies.

See Also: Alibaba Regulatory Woes A 'Nirvana Set Up' For FAANG Stocks, Says Analyst

Price Action: Pinduoduo shares closed 0.8% lower at $177.67 on Thursday and gained 1.14% at $179.70 in the after-hours session.

 

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