The Birth of Shanghai's First Conglomerate

Even Tencent Group, which has an excellent reputation in the market.

In mid-October 2018, a massive wave of headquarters layoffs began.

The situation with the other large companies is self-evident.

If we're talking about who can come up with the most ingenious way about layoffs, it has to be Mr. Ma.

According to him, that's about sending outstanding talents to the whole society.

Layoffs are layoffs, and it's something that's hard to talk about for those who are laid off.

No matter how turbulent the outside world may be, Chen Pingsheng will not distort the facts in his explanations to the outside world.

They openly acknowledged that their business performance over the years had not been ideal.

Whether running a business or living as a person, one must be good at self-reflection.

Of course, this comes with the arrival of major changes in the real estate market.

Whether it's traditional industries or the internet economy, both are declining year by year under this impact.

The good ones are only a very small part; the rise of Tencent Media alone is enough to offset all the losses of companies like Bobo Milk Tea, Tencent Entertainment, and Boiling Sheep.

This is the advantage of a large, diversified conglomerate.

When one project fails, others rise to prominence.

In order to better adapt to the times, Tencent Film Group has undergone three major restructurings.

The first step was to tighten funding, reduce investment, and build high walls to stockpile grain.

The second was to launch a reform that overturned the power structure of all its stores, changing the previous top-down power structure.

Change it to bottom to top.

The power to select managers has been delegated from leaders to employees to make their own decisions.

This step proved to be very effective.

This single step completely improved the operating conditions of the entire group's stores.

As for the third step, which is the one we're doing now.

Remove the CEO from the bench and replace it with a rotating system.

The CEOs of major companies are elected by a joint vote of the board of directors and the next level of management.

The biggest advantage of doing this is that it prevents companies from failing due to inappropriate management.

In addition, nearly a quarter of the senior and middle management at headquarters were also cut.

This massive wave of layoffs has once again intensified discussions about mid-life crises throughout Shanghai.

That's why state-owned enterprises are so great.

Private enterprises operate entirely within a market economy, where competition is fierce.

In order to maintain the vitality of the company, it is normal to have a wave of layoffs every few years.

When the wave of layoffs hit, the entire group was on edge, seeing threats everywhere.

Whether it's management or frontline employees, the most frequent question they've been asking these past few days is who will be laid off.

Under these circumstances, everyone spontaneously started working overtime.

People usually leave work promptly at 5 p.m., but by 9 p.m., very few are willing to leave.

No one dares to relax at this time unless the optimized list appears.

On one side is the prosperity of the city, and on the other side is the bitterness and hardship of migrant workers.

Amid the wave of layoffs, countless others are burdened with mortgages, social security contributions, and the financial burden of their children's education.

They even carried the burden of their elderly parents' medical expenses, as well as various other heavy responsibilities.

For them, who are middle-aged, a good job means not only income, but also family stability and their children's education.

His wife's earnest hopes, and his parents' pride, etc.

The consequences of losing this job are something a middle-aged person can't even imagine.

Therefore, even though no one said they wanted to work overtime, no one dared to leave before the others.

This is what middle age is like.

Middle age is filled with helplessness and heartache.

On October 21, a modified version of the layoff video, filmed by employees themselves, was uploaded to the intranet.

It was filmed spontaneously by a few employees who love music, with modified lyrics, and it fully expresses the hardships and sorrows of employees amidst the wave of layoffs. "Are you as anxious as I am during the layoffs, holding on to your post and working overtime?"

Are you like me, unable to let go of the shackles of social security and housing fund even though you take the blame every day?

Do you, like me, fantasize all day about living a life where you no longer have to put up with your boss's attitude?

Are you like me, only able to be cowardly and retreat, and should break your silence when faced with injustice?

Your future is not a dream; if you live every minute earnestly, your future will not be a dream, and your perseverance will not be in vain.

What was originally a video that was widely circulated internally was then uploaded to the internet.

This sparked heated discussions.

It even became a controversial video.

Regardless of the employees' bitterness and tears, when that list of employees to be optimized was handed to their desks.

This means they have left Tencent Film Group, and also left the haven that had always sheltered them from the storm.

At the top level of the group, Chen Pingsheng officially changed the original N+3 compensation plan to N+8.

This is arguably the most dignified compensation plan that he, as the big boss, could offer to these departing employees.

More than 8,000 employees were laid off as part of the group's restructuring.

It involves the headquarters of four major groups: Shanghai, Beijing, Hong Kong, and Guangdong.

It also involves the headquarters of various subsidiaries.

Corporate layoffs are like a cold machine, regardless of your past contributions.
Anyone who receives the list must leave within three days.

Some wept, some were resentful, and some cried out in silence.

I tried so hard, so why was I still laid off?
There aren't many reasons, but it can be said that over 80% of them were deserved to be laid off, and the remaining 20% ​​may have been laid off unjustly.

This injustice often involves some interpersonal relationships and social dynamics.

No large company can guarantee that an employee will leave the company 100% during a wave of layoffs.

It's also possible that he did perform well, but ended up on the layoff list because he offended someone.

Even as the chairman of the group, Chen Pingsheng could not ensure fairness for everyone.

He can only do his best to minimize the occurrence of such incidents.

After all, Tengying is now too big; the group headquarters alone has about 40,000 employees.

This does not include Tengfei New Energy's affiliated companies.

If all the employees of its stores are included, the number of employees is approximately over 600,000.

For such a large conglomerate, the layoff of over 8,000 employees at its headquarters is so small that it barely makes a ripple.

Once the layoff list is finalized and completed, the remaining task is to recruit new employees.

And to initiate a new round of voting meetings for rotating CEOs.

Chu Qiuyan was the first to step down from her position as CEO of Bobo Milk Tea, and she was succeeded by Mo Bosheng, the vice president of the milk tea business unit.

He is only thirty-four years old, and in his past decisions, he has always been very convincing and decisive.

As for Chu Qiuyan herself, she was officially transferred to the Dream Realization Foundation as vice president.

The CEO of Xin Teng Live has changed from Chang Fu to Xin Youzhi, who has consistently ranked first on Xin Teng Live's sales chart.

Following a board resolution, Chang Fu was appointed as the executive CEO of Tengying Entertainment.

Bai Xin has taken over as vice president.

Yang Qian remained in office, and Shen Congjun, the CEO of Tenghui Department Store, was replaced by Vice President Zhang Guangbei.

Shen Congjun was transferred to Tencent Media to take charge of the Global Channel Department.

In the next few years, Tengyou Media will definitely be focusing on developing influencer marketing, so transferring him to be in charge of the group's product selection channels is obviously the most suitable option.

Zhang Wanyi, the former secretary, has taken over as the first CEO of Tengyou Media.

Many of the vice presidents below have swapped positions with Xin Teng Live.

As for Boiling Sheep, Snack Run, and Melon Seed Used Cars, some adjustments have been made.

After this massive personnel reshuffle, there are unlikely to be any major changes in the next few years.

(End of this chapter)