- iQIYI Inc (NASDAQ:IQ) had begun laying off employees on December 1, touted as a historic layoff, Pandaily reports from Sina Tech.
- The round of layoffs will likely continue after the Spring Festival.
- The layoffs aim to increase profitability to focus on content and technology, refine cost management and flatten the company’s overall structure.
- As a result, iQIYI laid off multiple middle-level (director-level) employees. The layoff included some senior employees and older employees with higher salaries.
- Expense-oriented departments, like marketing, delivery, and channel cooperation, saw a higher proportion of layoffs, from 30% to 50%.
- iQIYI laid off almost all the staff of iQiyi Research Institute and iQiyi Game Center.
- Further, iQIYI will merge short video products with other products, and only 40% of the staff will stay.
- Independently-run iQiyi Smart has a relatively lower layoff ratio compared with the spending departments.
- Related Content: iQIYI Shares Drop As Q4 Revenue Outlook Misses Consensus
- Price Action: IQ shares traded lower by 3.93% at $5.99 on the last check Wednesday.
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