Home » The mainland video platform iQiyi lays off 20% to 40% | Draft | Epoch Times

The mainland video platform iQiyi lays off 20% to 40% | Draft | Epoch Times

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[Epoch Times December 02, 2021](Epoch Times reporter Liu Yi comprehensive report) On December 1, the mainland video platform iQiyi reported layoffs. The layoffs ranged from 20% to 40%. It is reported that, The layoffs were mainly due to the fact that under the new policies and regulations of the Chinese Communist Party, iQiyi cut off a number of programs and increased its losses.

On the 1st, the mainland Sina Technology, “China Business News” and the Cailian News Agency reported the news.

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According to “China Business News”, an employee of iQiyi told the media that iQiyi is currently laying off employees, and the proportion of layoffs is between 20% and 40%. The compensation for layoffs is temporarily paid at N+1. “But currently The layoff policy is still changing, and there is still uncertainty about the specific distribution.” The employee said, “It was too sudden. There was no information to disclose before.”

A reporter from China Business News cross-examined another iQiyi employee from another department and confirmed that iQiyi is indeed layoffs, and compensation for layoffs is N+1.

According to Sina Technology, the proportion of layoffs in the marketing, distribution, and channel cooperation departments is more than 30%, and the maximum can reach 50%. Almost all employees who have not passed the probation period are among the layoffs. Almost all the staff of iQiyi Research Institute, iQiyi Game Center and other departments have been laid off. Short video products will be merged with other products at an instant, and only 40% of them can stay. The proportion of layoffs for independent iQiyi Intelligence (with VR and other products) is relatively low compared to other departments. The proportion of layoffs in the content department is about 30%.

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The entire scope of iQiyi layoffs affects the entire company, including the game department, user product department, and iQiyi Instant.

Many old employees told Sina Technology that the layoffs were “the largest layoffs in the history of iQiyi”, and this round of layoffs is not over. Many people will be laid off and left around the Chinese New Year.

The Epoch Times reporter called iQiyi’s customer service on the morning of the 2nd. A woman said after consulting her superiors that the reporter would like to wait for the relevant news released by the company today.

As for the reasons for the layoffs, some people in the industry told the Finance Association that this year, the cancellation of the draft, the lack of hot dramas, and the performance pressure caused by the redundancy of the studio have induced the major layoffs.

In May of this year, iQiyi’s self-made trump card audition show “Youth with You 3” was affected by the “pouring milk” incident and was pushed to the forefront of public opinion. iQiyi subsequently terminated the program’s recording. In September, after the State Administration of Radio and Television of the Communist Party of China asked not to broadcast idol development programs, iQiyi announced that it would cancel idol audition shows and any off-site voting in the next few years. The ban on audition shows affected the platform’s advertising revenue. . The financial report shows that in the third quarter of 2021, iQiyi’s advertising revenue was 1.66 billion yuan (RMB, the same below), compared with 1.84 billion yuan in the same period last year, a year-on-year decrease of 9.8%.

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Secondly, the lack of popular dramas and redundant studios are also one of the factors that led to the layoffs of iQiyi. The aforementioned industry insider said: “A TV drama or web drama has a large initial investment and a long operation cycle. Once the performance of the ratings is not good, the risk of loss is very high. However, iQiyi has more than 20 studios, which is indeed redundant. Besides, operating costs are too high.”

Moreover, the content production cost of long video websites is high, the investment is huge, and the production cycle is long, coupled with the cost of follow-up promotion, the overall risk is higher. With the increasing demand of users for short videos, the loss of traffic and the high cost of content production have also affected the revenue capacity and membership growth of the long video platform.

According to iQiyi’s 2021 third-quarter financial report, iQiyi’s total revenue in the quarter reached 7.6 billion yuan, a year-on-year increase of 6%. The net profit attributable to the parent was a loss of 1.7 billion yuan, and a loss of 1.2 billion yuan in the same period last year, an increase of 41.6. %, iQiyi lost 6 billion yuan in 2020.

The N in the layoff compensation N+1 refers to the economic compensation that pays one month’s salary for every year of work. The so-called +1 refers to the additional one month’s salary paid by the employer when the employer terminates the labor contract but does not notify the employee in writing 30 days in advance.

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Editor in charge: Li Muen#


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