Chinese ecommerce giant JD.com will be merging Jingxi Business Group into its JD Retail division in the tech giant’s latest round of organizational restructuring, 36Kr reported.
JD.com plans to cut employees from the affected subdivisions before integrating firms under Jingxi Business Group – namely Jingxitong, Jingxi, and Jingxi Pinpin – into JD Retail.
This restructuring will be executed in stages, with business being gradually cut down. Prior to this development, Jingxi Pinpin operated in 20 provinces, which it has now slashed to only Zhengzhou and Beijing.
Jingxi Pinpin is regionally profitable in Beijing, but not in Zhengzhou. JD.com is also testing a new distribution model in the latter city in an effort to pick up revenues. If these operations aren’t profitable soon, they will be discontinued.
See also: Can JD.com make a splash in SEA?
These aren’t the only divisions at risk. A source told 36Kr that “before the end of June, projects in JD Health, JD Industry, and JD Retail, which did not make profits or reduce loss to a reasonable level, have the possibility of being cut.” These new businesses had incurred a net loss of US$1.6 billion, as per JD.com’s 2021 financial report.
Editing by Miguel Cordon and Lorenzo Kyle Subido
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