By Summer

Source: GPLP (ID: GPLPCN)

Feb. 10, The first day of work for many Internet companies, Jixue Zhang, founder of Xinchao media, announced at a staff meeting that he would lay off about 500 people, including 20 management cadres, and eliminate 10% of the bottom-out in 2019, the total number of employees remained at more than 4,000; Executives took the lead in cutting pay by 20%.

The layoffs will involve sales, development, services and other departments.

In an internal letter, Jixue Zhang confessed that, “I led my team through SARS in 2003, through the earthquake in 2008, but I was afraid of losing to the ‘new Crown’ in 2020, because there was nobody on the street, and there were no consumers, which was a bit scary. “Even with nearly $1 billion in cash on the account, if revenue goes to zero, you only have six or seven months to live. To overcome this epidemic, you have to put on the brakes, choke off cash flow, cut costs and stay alive. “

Founded in 2007, the Xinchao Media is the main community buildings of the elevator media, and the target is the traditional advertising industry leader, Focus Media. As October 2018, Xinchao Media covered 100 cities and 650,000 elevators, covering 200 million people in communities, According to official information.

It is reported in 2018, Xinchao Media received investment from Baidu, JD.com group announced a strategic investment in Xinchao media in August 8,2019, raising nearly 1 billion yuan. At present, the latest estimate value of Xinchao Media reached 15 billion yuan.

In addition, Xinchao Media also proposed a number of “self-help” measures, including the top executives take the lead in reducing pay by 20% , with performance management, organizational structure adjustment, strict control of expenses and other eight measures.