NetEase’s business restructure resulted in a slash of headcount

Because of the pessimistic economic outlook and a dim e-commerce forecast, NetEase is slashing up headcount from several business units ranging from e-commerce to education, attempting to boost core business’ revenue. According to insiders, some units face draconian measures with redundancy as high as 50% of total employees. Though its e-commerce sites Kaola and Yanxuan reported a third of total net revenues in the fourth quarter of 2018, it clearly sees a downward trend and negative growth, which will inevitably result in a major downsizing and restructure.