One of the biggest Chinese investment holding conglomerate, Tencent Holdings Limited is all set for its organizational restructuring. The company is planning to lay off 10 percent of senior managers as a part of its restructuring efforts, as reported by the local media outlet 36Kr. Middle-level managers include assistant general manager, deputy general manager, and sometimes vice presidents are also covered in the middle level.
As per the report, there are 200 middle-level managers in the company and the plan is to lay off ten percent of the total number. Tencent has not yet officially responded to the reports of the restructuring process that is bound to take place.
As per earlier reports, the company is now planning to bet on younger talents with Tencent’s founder Pony Ma acknowledging that less than 10 people among Tencent’s thousands of director-level staff are aged under 30.
Tencent’s plans of restructuring comes close on the heels of ecommerce giant JD.com’s decision to eliminate nearly 10 percent of its executives in the post of vice presidents and above in the month of February.
In another such move Didi Chuxing, which owns around 80 percent of ride-sharing market, said last month that it would axe around 2,000 staff members, or 15 percent of its entire workforce, this year.
But Tencent’s restructuring process is different from layoffs in companies such as Didi, Meituan, and Netease. Tencent’s adjustment did not cause any storms on social networks and news media and if we consider the total workforce of Tencent, only a small percentage of employees left Tencent in this round of adjustment.
There has been a growing trend among the companies to spend big on youth and Tencent’s restructuring plan is also a part of this shift. Last week, China’s search engine leviathan, Baidu unveiled its executive retirement plan, the main aim of which is to reinvigorate its management team by using an injection of youth as the growth has become stagnant amidst lacklustre external factors.