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JD.com reduces the salaries of more than 2,000 senior executives

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Chinese e-commerce giant JD.com announced to reduce the salaries of more than 2,000 senior executives by 10% to 20% next year as part of an effort to reduce income inequality.
The e-commerce behemoth intends to set aside 10 billion yuan ($1.40 billion) for a fund to assist employees in purchasing homes. Founder Richard Liu also intends to personally donate 100 million yuan to a fund that assists children of deceased JD employees.
JD’s board chairman, Liu Fang Wenbo, stated that the move would put the company under short-term financial pressure. This year, China has been hit by a slowing economy and falling consumer spending.
Last year, Alibaba Group and Tencent Holdings pledged to contribute billions of dollars to the effort. Last year, Chinese President Xi Jinping launched a drive for “common prosperity” in an effort to reduce income inequality in the country.

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