Jingdong Announced The Final Elimination Of 10% Vice President Level Executives

Jingdong also reported layoffs.

According to reports, at the Jingdong Group annual meeting held last weekend, Jingdong announced that it would eliminate 10% of top executives in 2019.

The decision made by Jingdong is after a deep introspection, in order to solve all kinds of organizational problems existing in enterprises at present, it is a way to regain entrepreneurial spirit and initiative.

In response, Jingdong responded very quickly that day, which is true.

"Jingdong group is actively promoting the pformation of" small group and big business ", aiming at revitalizing resources, giving full play to the vitality of the organization, and escorting the development of diversified businesses to achieve quality growth.

Reporters learned from Jingdong that at present, top executives of Jingdong vice presidents should be between 80 and 100.

The reason why the news has aroused great concern is at least two parts: one is that the current enterprise elimination ratio is generally 5~10%; the Jingdong has reached the upper limit this time; the other is that layoffs do not start at the grass-roots level, but directly from the vice president level, which is quite rare in Internet Co or traditional enterprises.

In response to this action, vice president Song Yang of Jingdong explained in reply to a reporter's inquiry that the layoffs do not mean strategic contraction, but a measure of organization and management, in order to strengthen the sense of crisis and awaken the entrepreneurial passion. Jingdong will continue to exert its efforts in the nine major sectors such as retail, logistics, statistics, products, insurance, cloud, Indonesia, Thailand and AI.

In 2019, Jingdong's determination to exchange blood was obvious.

Urgent need to ease the dilemma

As we all know, the Jingdong encountered unprecedented challenges in 2018.

From the external environment, the electronic business platform generally faces the problem of Internet population and traffic dividend disappearing. We have shifted from competing for incremental market to mining value of stock market.

In the past year, Jingdong's GMV growth slowed down, and the number of active users declined, superposing the founder crisis triggered by the "Minnesota incident", and Jingdong's share price fell, breaking through and breaking through.

In Liu Qiangdong's 2019 New Year's congratulatory letter, he likened 2018 to "an unusually difficult year for me, my family and company."

In the face of such internal and external difficulties, Jingdong also frequently brew counterattacks.

In November 2018, the Jingdong revealed 10% of the proposed internal layoffs.

Although the Jingdong official denied this, it was interpreted as a change in the normal personnel assessment at the end of the year.

However, reporters from Chinese entrepreneurs learned from Jingdong's employees in the mall that a considerable proportion of employees in Jingdong were "left" in the form of "optimization".

Jingdong mall staff revealed that HR first issued a separation compensation agreement to the "optimized" colleagues in the Department, and asked them to take the initiative to quit.

Most employees will choose to accept this arrangement, thus avoiding the experience of "being laid off" on their resume.

From a commercial point of view, this can also reduce the proportion and impact of "layoffs".

While shrinking the organization, Jingdong is also reflecting on the reasons for the difficulties encountered in the past year.

In the early December 2018, the core executives of Jingdong mall spent 4 days and 4 nights to discuss the strategy of the mall.

After the meeting, the decision-makers reformed the basic business philosophy of the mall, that is, trust, customer and value.

At present, these 4 days and 4 nights' meetings also confirmed the next series of strategic and organizational changes of Jingdong.

On the evening of December 21, 2018, Jingdong announced the second organizational restructuring in 2018, which is also known as the largest organizational restructuring in Jingdong history, covering the whole line of business.

Jingdong mall has since been divided into three parts: the front desk, the middle stage and the backstage. It has set up the platform operation Department and the purchase and purchase department, integrating the fresh business department into 7 Fresh. At the same time, Xu Lei was pushed to the stage to assume the CEO value. The three major business groups in Jingdong changed from Liu Qiangdonghui to Xu Lei.

Organizational change is the top priority.

In January 19, 2019, at the annual meeting of Jingdong mall, Liu Qiangdong did not attend. Xu Lei first made a speech at the annual meeting as CEO of Jingdong mall.

It is worth noting that in terms of organizational culture, Xu Lei spoke in a severe way, and frankly pointed out that the commercial city is a chronic disease when people are floating on business.

"Inward looking, to be practical and realistic, our organizational capabilities and behavior also have problems: the value of customer first is diluted. Only KPI theory and the" cross number "culture prevail, the sectoral walls are getting higher and higher, speaking to themselves, there is no unified business logic, the response to external changes is slower and slower, and the customers are arrogant.

We are turned into a challenger by a subversive industry, but we have not made corresponding preparations in terms of ideology and mechanism.

Xu Lei said.

In addition, Xu Lei's speech also foreshadowed a bigger change in the future of Jingdong, that is, the change of business mode.

Jingdong has always been a centralized and open shelf business mode, which is related to the genes of Jingdong's self supply chain, and is also related to the early mode of Internet retailing.

However, with the development of technology and the emergence of various Internet scenarios, the boundaries of retailing have been greatly expanded, and social networking, short video, information and games have formed opportunities and needs for pactions.

Xu Lei said that the era of "beating the world" has passed. Under such a new competitive format, the needs of customers become diversified, and the organizations of enterprises need to become more flexible. Business links need to be components that can be split, reconfigured and have strong coupling.

Such a change of thinking will be a subversive pformation process for a large group with 180 thousand employees.

In February 1st, Liu Qiangdong sent a congratulatory letter to the official website of Jingdong.

In his letter, he described the "organization" as the first major event of the Jingdong in 2019.

Liu Qiangdong also mentioned for the first time the organizational change direction of Jingdong's "small group and big business" in the letter.

"Small group, big business", simply speaking, that is, the function of headquarters is pformed from management to strategy, and the operation function is sinks and decision-making is preposed. Headquarters is more concerned about collaborative development, platform construction and digital management.

In this way of operation and operation, Jingdong has taken the lead in the 118 logistics entities of the logistics sector at the end of 2018, when it was called "Big Boss".

The core concept of "Big Boss" is "small business and decision making front", and encourage Big Boss to understand indicators from the perspective of customer needs, focus on the highest priority, and coordinate with the organization.

In 2019, the organizational model similar to Big Boss will be promoted in the Jingdong.

It is conceivable that Jingdong's organizational structure is bound to undergo a profound change from top to bottom.

As the vice president and the core of the team, the decision level and executive level need to be highly recognized, understood and implemented.

Those who are unable to adapt to this change and fail to deliver results will probably be eliminated.

At the beginning of the Spring Festival in 2019, Jingdong launched the final elimination from the vice president level, though it seems "thunder means". But from the history of Jingdong, there are often severe personnel changes at the critical moment, which should not be unfamiliar to the Jing Dong people who emphasize execution, efficiency, responsible for performance and fighting culture.

Jingdong staff said that since December 2018, the atmosphere in the Department has become an unprecedented tension. Overtime and vigilance have become the KPI standard we all know.