JD delivery staff facing pay cuts

Chinese e-commerce giant JD is reducing salaries for its delivery staff across the country by adopting a commission-based payment scheme and reducing benefits, in a bid to reduce costs and boost margins after three senior executives of the company announced their resignation.

JD will replace its couriers' basic salaries with commission-based compensation starting from June, and lower contributions to employees' housing funds from 12 percent to 7 percent, a move that could result in wage reductions, according to media reports.

JD Logistics, the logistics arm of the Beijing-based tech heavyweight, responded via its official Sina Weibo account, saying that as the number of orders from individual clients increases, the company is looking to adopt an incentive plan to reward outstanding employees.