Shares of iQIYI traded in the US have plunged in the past few months, with a cumulative decline of about 60 percent since July.
Chinese video platform iQIYI is laying off between 20-40 percent of its workforce, yicai.com reported today, citing employees of the company.
Layoff compensation is temporarily being paid out at N+1 times monthly salary, and "the layoff policy is still in the making, and there is uncertainty about how much will be paid out," the employee said. N refers to the number of years an employee has worked at the company.
Another iQIYI employee from another department also said the company is laying off employees and offering N+1 times monthly salary compensation, according to the report.
The layoffs span the entire company, including the gaming division and user product division, the report said.
There have been continued losses from long-form video platforms, including iQIYI, Tencent Video and Youku.
iQIYI posted revenue of RMB 7.6 billion in the third quarter, up 6 percent from a year earlier. But it posted a net loss attributable to its parent company of RMB 1.7 billion for the quarter, up from a loss of RMB 1.2 billion a year earlier.
Shares of iQIYI traded in the US have plunged in the past few months, with a cumulative decline of about 60 percent since July.
