Shulou(Shulou.com)11/24 Report--

On the afternoon of July 17, it was reported today that Yao Jinbo, CEO of 58 Tongcheng, issued an internal letter demanding that businesses that could not be profitable within the year be cut off.

According to the exposure information, Yao Jinbo said in the letter that the performance and business development of the same city after 58 years fell short of expectations. Bad business should be contracted, and it should be shut down and turned on. The goal of 58 Tongcheng this year is to achieve 12 businesses that are basically profitable.

He stressed that all businesses in the same city, this year in the urban dimension profit is the minimum requirement, if the year can not achieve profit, 100 percent cut, all businesses should achieve full-caliber profit as soon as possible. Yao Jinbo also said that it would take at least three years to prepare for winter, and it would take at least three years to complete the industrialization upgrade and reach a qualified level.

It is worth noting that in May this year, 58 Tongcheng had been reported layoffs. At that time, some employees said that the layoff ratio was more than 30%, involving multiple business lines, and compensation was made according to N+1.

58 Tongcheng has not commented on the issue of "cutting off businesses that cannot be profitable during the year." However, Yao Jinbo has previously made similar statements.

In October 2022, Yao Jinbo delivered a speech entitled "A Letter to All Students" internally. At that time, he said, because of the superposition of the economic environment, the overall consumption confidence of the impact, 58 Tongcheng company's main business has been relatively large impact, among which real estate, recruitment and other fields will be more affected. Yao Jinbo requires that all businesses in 58 cities in 2023 be profitable in all cities, or that there be certain goals and trends, otherwise the business will be dangerous.

Yao Jinbo also revealed at that time that many departments within 58 City had transmitted cold air inward and outward_extremely negotiated and extremely reduced costs. From April 2021 to October 2022, more than 1000 people in 58 cities have been transferred. He raised four cautions about internal management: "Be cautious about hiring, be cautious about adding people, be cautious about expanding scale, and be cautious about starting new projects. Yao says these firm decisions helped the company avoid making its financial statements uglier.

Cost reduction in the same city has not only affected ordinary employees, but also some executives. At that time, he announced internally that in order to give young cadres more opportunities and stage, senior vice president Ye Bing and vice president Chen Huicong took the lead in joining the group's "honorary retirement plan."

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