Xi’s Common Prosperity Roars Back in JD Executive Pay Cuts

Billionaire Liu donates 100 million yuan to staff benefits
China’s No. 2 retailer touts common dream of owning a home

WATCH: China’s largest online retailer JD is slashing salaries for about 2,000 managers by 10% to 20%, and is diverting some of the savings toward a raft of employee benefits, according to a person familiar with the matter. Annabelle Droulers reports.Source: Bloomberg

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By Jane Zhang

November 22, 2022 at 5:01 AM UTC

Updated on

November 22, 2022 at 10:03 AM UTC

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JD.com Inc. is slashing salaries for about 2,000 managers by 10% to 20% and diverting some of those savings toward a $1.4 billion employee benefits fund, aligning China’s No. 2 online retailer with Xi Jinping’s “common prosperity” campaign to share the wealth.

Billionaire JD.com founder Richard Liu will donate 100 million yuan ($14 million) of his own money toward staff welfare, a person familiar with the matter said. China’s largest online retailer after Alibaba Group Holding Ltd. will also set up a 10 billion yuan fund to provide staff with interest-free home loans, the person added, asking not to be identified because it hasn’t been publicized.