iQiyi reportedly cut at least 20% of jobs amid losses

The Chinese video streaming platform iQiyi would lay off “on average 20%” of its employees in all departments, with the least profitable divisions facing job cuts of up to 40%, according to the Chinese media. Caixin Global. It comes after the company incurred an operating loss of US $ 212.3 million and an operating loss margin of 18% in the third quarter of 2021, compared to an operating loss of approximately US $ 188.3 million and an operating loss margin of 17% in the same period. Last year.

Meanwhile, another Chinese financial news outlet, Yicai, also reported that iQiyi was laying off between 20% and 40% of its employees. The same time, Business time reported that iQiyi planned to cut wages by a fifth and that the company claimed to have a workforce of more than 7,700 people at the end of last year. INTERACTIVE-MARKETING contacted iQiyi for comment.

According to iQiyi, the net loss attributable to iQiyi was US $ 268.4 million, compared to a net loss attributable to iQiyi of approximately US $ 188.3 million in the same period last year. Online advertising services revenue was US $ 257.7 million, a decrease of 10% compared to the same period in 2020, mainly due to the decrease in premium content launched in during the quarter and the difficult macroeconomic environment in China.

On the other hand, content distribution revenues amounted to US $ 97.3 million, an increase of 60% compared to the same period in 2020. This increase is mainly due to a greater number of content titles distributed on other platforms during the quarter. Last December, iQiyi announced plans to hire 200 new employees in the coming years when it launched its international headquarters in Singapore. IQiyi spokesperson said INTERACTIVE-MARKETING previously, hiring would focus on content, ad sales, community engagement, marketing and partnerships. According to LinkedIn, there are currently 32 employees in Singapore, 24 in Malaysia and 18 in Hong Kong. The majority are based in Beijing and Shanghai.

Separately, iQiyi was also in the spotlight recently after distancing itself from the Women’s Tennis Association (WTA). The Chinese streaming platform had asked the WTA to remove its name from the organization’s site last week before the organization’s decision to suspend events in China. According to The Wall Street Journal, the request was made before the WTA’s decision to suspend all events in China, including Hong Kong. It came in response to lingering questions about the safety of Chinese tennis player Peng Shuai who accused former Chinese State Council vice-premier Zhang Gaoli of sexually assaulting her for a long time.

Photo courtesy: 123RF

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