Tencent-backed WeDoctor, one of China’s major online health care platforms, is letting go a significant number of its employees after the company’s plans for an IPO were delayed, reports Bloomberg. According to people familiar with the matter, the health care startup has already shrunk its workforce down to about 3,000 employees from around 4,000 last year.
WeDoctor will likely cut more jobs to a total of mid- to low- 2,000s, they said. It will also reduce base salaries and shift compensation for some people to performance-related bonuses, they said.
WeDoctor filed for a IPO in Hong Kong last year, but Beijing’s sweeping crackdown on the country’s private sector has disrupted many such offerings. The overhaul is aimed at repositioning the company as it explores going public via a potential merger with a special purpose acquisition company, instead of a traditional IPO, the people said.