[Wang Linglin a’ cur air bhog layoffs]Golden Rooster’s profits fell 40%.

Dongsen Shopping Downsizes Amidst Profit Slump, Leading to Layoffs and Restructuring

Taipei, Taiwan – The festive spirit of Double 11, China’s massive online shopping event, appears to have bypassed Dongsen Shopping, a subsidiary of the Taiwanese retail giant Dongsen Group. Sources within the e-commerce circle reveal that the company has been quietly downsizing in recent weeks, with reports of layoffs and a newly implemented "power saving plan" that casts a shadow over year-end bonuses.

This move comes at a time when Dongsen Group has been aggressively expanding offline, investing heavily in brick-and-mortar stores. While its initial foray into physical retail included a glamorous groundbreaking ceremony for a new global operations headquarters in Linkou, New Taipei on November 22, the financial strain of these ambitious expansion plans seems to be taking its toll.

Sources whisper that Dongsen Shopping’s profits have plummeted by almost 40% compared to the same period last year. "People are returning to physical stores post-pandemic, and this has hurt e-commerce," notes an informed insider. "But the bigger problem is that the group is burning through cash on building physical stores, which has led to these drastic cuts."

Adding fuel to the fire are rumors that Dongsen Shopping’s general manager, Peng Hongjue, recently stepped down, replaced by veteran Zhao Shiheng, further fueling speculation about internal turmoil.

One former employee, speaking anonymously due to legal restrictions, paints a grim picture. "Before Double 11, they laid off around 30 people in the programming department, and then they started cutting the engineering department," they claim. "Now they are asking people to resign and promising them immediate severance if they agree. But some of us have been suspended for weeks, haven’t received any severance pay, and are now facing the holidays without any financial security."

For its part, Dongsen Shopping maintains that these personnel changes are part of a larger strategy to

optimize resource allocation and improve operational efficiency.

"In response to overall market changes and rising operating costs, this personnel reduction was properly handled in accordance with the law," a representative stated. "Our aim is to develop individuals and ensure the continued success of our units. We have plans to increase wages and offer more growth opportunities to exceptional colleagues next year."

Widespread speculation suggests that these cutbacks may also signal a broader trend within the Taiwanese retail landscape. As online retail giants like Alibaba and JD.com grapple with shrinking margins and increased competition, traditional retailers are being forced to adapt or risk becoming casualties of the changing shopping habits of consumers.

Only time will tell if Dongsen Group’s ambitious offline expansion can offset the challenges faced by its online arm. But for now, the news of layoffs and dwindling profits raises concerns about the future trajectory of this once influential e-commerce titan.

[Image: GIF of Double 11 Shopping Festival]
[Image: GIF of Dongsen Supply Chain Center]

2024-12-02 09:34:00
#Wang #Linglin #cur #air #bhog #layoffsGolden #Roosters #profits #fell