Near the end of the year, the news of "you liked the layoffs" came out on social media. Some media reported that the number of people involved in the layoffs of Youzan will exceed 1500. And some users who claim to be employees of Youzan have revealed on the online platform that they have been laid off.
When China Youzan landed on Hong Kong stocks in 2018, it was once known as the "first share of WeChat e-commerce". But over the years, Youzan's development has not been smooth. Youzan originally went public through the sale of 51% of the equity, and after that, Youzan twice promoted Youzan Technology to land on the Hong Kong Stock Exchange in order to achieve an overall listing, but the listing plan had to press the "pause button" at the end of 2021. At the same time, Youzan Technology has also been in a state of loss.
On January 20, 2022, China Youzan's share price closed at HK$0.37, down 1.33%. Since mid-October 2021, China Youzan stock has been in decline, and in three months, the stock price has fallen by 67%.
There is a wave of praise and layoffs
On January 20, it was reported that Youzan had launched the first round of layoffs this month, first of all product and technology research and development personnel, and the scale of this layoff was expected to exceed 1500 people; and said that Youzan had written personnel optimization into the OKR (that is, "set and completed goals") in 2022.
When Caijing Tianxia Weekly asked China Youzan, a hong Kong listed company, to verify the news, the other party replied that the company had not received a notice in this regard, and said that it was a company with praise in Hong Kong.
On the pulse platform, a number of IDs certified as employees of Youzan Technology broke the news that a large number of employees in Youzan's R&D department had been laid off. Some people said that there was a group of 13 people who were laid off 4 people; others said that his group was cut by 30%; at the same time, some people said that they had been laid off yesterday and said that they belonged to the Java backend.
There are also users on the pulse platform who broke the news that the layoffs are involved in addition to direct front-line sales.
However, a number of employees who have praised the "Finance world" weekly said that they have not been affected, which is "not clear".
In addition, Youzan vice president Chen Jinhui also left his post before the end of last year. According to the above-mentioned media report, Chen Jinhui joined Youzan in June 2017, mainly responsible for channels, but left in October 2021; only two months later, his assistant in Youzan also left.
In December 2021, on the pulse platform, some netizens said that the failure of Youzan Technology's sprint to go public may bring about the impact of "layoffs".
Youzan Technology failed to go public
According to public information, Youzan, as a merchant service company, was founded in 2012, and currently has five major business systems of social e-commerce, new retail, beauty industry, education and youzan internationalization, through its social e-commerce, store management and other new retail SaaS software products, solutions and services, to help merchants solve a series of problems encountered in the mobile Internet era such as promotion and customer acquisition, transaction conversion and so on.
In April 2018, China Innovation Payment Group, a Hong Kong-listed company, acquired 51% of Youzan's equity, becoming Youzan's largest shareholder. After that, China Innovation Payment changed its name to China Youzan, and Youzan completed the backdoor listing.
Youzan Technology is a holding subsidiary of China Youzan and has twice submitted prospectuses to the Hong Kong Stock Exchange. Since all of Youzan's equity has not been listed, if there is a Zan technology that can land on the Hong Kong Stock Exchange, then Youzan can achieve the overall listing of equity.
At the end of August 2021, Youzan Technology submitted a prospectus to Hong Kong stocks again. However, on December 22, 2021, China Youzan issued an announcement that considering that youzan technology listing application has lasted for a long time, even if the company has done its best, it still has not received the news of youzan technology listing application for hearing; during this period, the development of China Youzan technology is restricted during the offer period, so it has decided not to promote the listing process of Youzan Technology and the privatization plan of China Youzan Technology. Youzan Technology's listing plan has been shelved.
From the perspective of financial data, Youzan Technology has also been in a state of loss. From 2018 to the first half of 2021, the net loss of Youzan Technology was 714 million yuan, 504 million yuan, 330 million yuan and 297 million yuan, respectively.
In the first half of 2021, youzan Technology's revenue reached 669 million yuan, while in the same period of 2020, this data is still 712 million yuan.
On the other hand, China's performance is also not very optimistic. According to the financial report, in the first three quarters of 2021, China Youzan recorded revenue of 1.176 billion yuan, a year-on-year decrease of 9.9%. Among them, subscription solutions and merchant solutions, which account for the main revenue composition of China Youzan, have declined in revenue. Among them, the revenue of merchant solutions fell by 20% compared with the same period in 2020 to 427 million yuan.
In the first three quarters of 2021, China Youzan recorded an operating loss of 759 million yuan, an increase of 113% year-on-year.
In addition, the number of existing paid merchants in China has also shown a downward trend. In the first three quarters of 2021, the number of paid merchants in China's Youzan stock was 90,300, a decrease of 7,953 compared with the same period in 2020.
Behind the loss of China's Zamn paid users, it is inseparable from the development of Kuaishou's e-commerce business. At the beginning of 2021, Kuaishou opened its self-built e-commerce business. Previously, Kuaishou was an important customer in China. Yu Tao, CFO of China Youzan, said at the performance briefing that China Youzan's GMV (that is, "total commodity trading") in the first half of 2021 was not satisfactory, mainly due to the decline in GMV from the Kuaishou channel.
Previously, it was reported that on November 15, 2021, Kuaishou E-commerce implemented a broken chain operation on third-party external links such as Youzan and Magic Chopsticks, and no longer supported third-party products with likes in the live broadcast room.