Bytedance slashes employees’ CNY bonuses despite company growth

Hongbao (red packets) in China, typically given out during the Chinese New Year by the elders to younger generations, embody fortune and good luck wished for the coming year. It’s also a tradition for companies to distribute lucky money before Spring Festival as an additional benefit to its employees. However, Bytedance confirmed slashing hongbao this year as it faces challenges including increased competition and an economic downturn, though the company is marching ahead aggressively which has made it a competitive rival to Tencent. Bytedance is not the only tech giant which has cut the yearly bonus for employees during the stagnant economy – Didi announced at an internal conference last month that it would halve the final rewards to the workforce and also no executives are entitled to any annual bonus.