Ziroom, a home rental platform based in Beijing, is reportedly conducting layoffs of around 20% of staff at its headquarters, which currently has less than 4,000 employees in the middle and back offices and functional departments, except for the front-line business departments. The layoffs cover internet marketing, operations management, quality, design and other departments, according to a report by 36Kr on Thursday.
According to several employees who spoke with 36Kr, the company has been carrying out mass layoffs since the beginning of June, and the monetary compensation is “N+1” (standard severance compensation, plus the salary of one month). The employees only have two or three days to complete the transitions.
Although the layoffs did not affect the firm’s front-line business departments, some property managers reported to 36Kr that their monthly merit pay was greatly reduced, which was a disguised pay cut. The bonus for keeping the same number of houses has been halved from 10,000 yuan ($1,496.62) to 5,000 yuan ($748.46).
This layoff news comes to light at a time when the company is managing only 850,000 houses this year from 1 million in 2021, according to its current and impacted employees.