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hinese e-commerce giant JD is reducing salaries for its delivery staff across the country by a
dopting a commission-based payment scheme and reducing benefits, in a bid to reduce costs and boost margins
after three senior executives of the company announced their resignation.
JD will replace its couriers’ basic salaries with commission-based compens
ation starting from June, and lower contributions to employees’ housing funds fr
om 12 percent to 7 percent, a move that could result in wage reductions, according to media reports.
JD Logistics, the logistics arm of the Beijing-based tech heavyweight, responded via it
s official Sina Weibo account, saying that as the number of orders from individual clients increases, th
e company is looking to adopt an incentive plan to reward outstanding employees.
It said that the company’s deliverymen in the second and third-tier cit
ies of southern China could earn more than 8,00
0 yuan ($1,191) under the current pilot scheme. “We expect to add more than 10,000
positions this year as JD Logistics is providing services to more industry customers,” JD said.