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On September 2nd, the official WeChat account of JD Blackboard reported that the salary for the 2025 school enrollment positions will be comprehensively increased.
The salary increase for core positions such as procurement, sales, technology, and products shall not be less than 20%. All "JD Procurement and Sales" recruited by the school will be able to achieve a salary structure of 20 months throughout the year, with an annual bonus of up to 8 times the monthly salary. In addition, there is an unlimited Big Boss incentive.
In the production and research positions, the average starting salary increase for algorithm positions exceeds 75%. The starting salary for positions such as hardware and design has increased by over 50%.
In addition to salary, JD.com has stated that it will increase its investment in living benefits. The first phase of the "JD Youth City" project has completed its topping out, and after it is put into use in 2027, it will provide nearly 4000 comfortable apartments for school enrollment that can be moved in immediately.
It is worth mentioning that JD.com has opened 18000 positions for this campus recruitment, including 12000 positions for the 2025 graduates and over 6000 internship positions.
Since the beginning of this year, there have been two rounds of salary adjustments
On May 27th, JD Group announced that starting from July 1st, 2024, JD's annual fixed salary for procurement and sales will be increased from 16 to 20, with no upper limit on performance incentives.
According to a report by China Fund News in September, this is the second time in six months that JD.com has increased salaries for frontline procurement and sales personnel. Previously, JD Group announced that from January 1, 2024, the annual fixed salary of frontline business personnel such as JD's procurement and sales will significantly increase by nearly 100%. At the beginning of 2024, all employees of JD Retail will receive an average salary increase of no less than 20%.
In addition, JD.com has called for the return of its former procurement and sales employees and promised to apply the new retail procurement and sales salary policy after their return. After the employees join, their welfare benefits will continue to accumulate, including age subsidies, housing security funds, continuing education, exclusive titles for old employees, and employee assistance funds.
It is worth noting that according to a report by Securities Times in May, Liu Qiangdong, founder of JD.com, bluntly stated at a management meeting in the past: "Anyone who has poor long-term performance and never strives is not my brother
An insider revealed, "The management is indeed reflecting on JD's loose management model in the past few years, which has led to the company's slow development in a fiercely competitive environment, unsatisfactory performance, serious cultural problems in its main business sectors, and a long-term low stock price. Therefore, a stricter attendance system has been introduced
Low price does not conflict with user experience
In recent years, JD.com has resumed its low price strategy, and the market was once concerned about whether this would affect profits.
According to a report by 21st Century Business Herald in August, the reporter learned from insiders close to JD.com that JD.com has no intention of obtaining unsustainable low price advantages through "inward rolling" subsidies or squeezing brand merchants. Instead, it will invest in overall improvement of user experience through "faster, better, and more cost-effective" measures, and in improving the efficiency of the supply chain to consolidate its differentiated competitive advantage.
On the evening of August 15th, JD.com released its Q2 2024 financial report, which provides some evidence.
According to the financial report, JD.com achieved a revenue of 291.4 billion yuan in the second quarter, a year-on-year increase of 1.2%; The net profit attributable to the parent company was 14.5 billion yuan, a year-on-year increase of 69.0%, significantly exceeding market expectations.
It is worth noting that based on the continuous investment in user experience over the past year, JD's user shopping frequency continues to maintain double-digit growth, while the number of new merchants has increased by 46% year-on-year.
21st Century Business Herald reporters learned from JD's earnings conference call with US stock investors that JD's management stated that there is no contradiction between business growth and profits. JD will continue to make targeted investments around improving its long-term supply chain capabilities and enhancing user experience, thereby bringing about continuous improvement in user experience and market position, and generating long-term sustainable profits. We are confident in achieving our long-term high single digit profit margin target
This article synthesizes the 21st Century Economic Report (reporter: Kong Haili), Jingdong Blackboard WeChat official account, China Fund News, Securities Times
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