Thursday, 2024 May 30

Nasdaq-listed recruitment platform 51job to shutter offices in 11 Chinese cities and slash employees

Chinese online recruitment platform 51job (NASDAQ: JOBS) is set to close offices in 11 Chinese cities including Shijiazhuang, Xiamen, and Lanzhou by the end of April and terminate contracts with all employees working in these locations, local media reported.

In an internal announcement released on April 16, 51job announced that a total of 127 employees will be affected by the shutdown of its offices, citing the impact of the coronavirus outbreak in China as one of the main reason for the closure. The announcement did not mention the company’s other offices.

Founded in 1998, 51job is a major recruitment platform in China. It offers a broad range of services in the areas of recruitment solutions, training, assessment, HR outsourcing, and consulting services. The company has a call center in Wuhan and a network of sales and service locations spanning 37 cities nationwide.

In the first quarter of 2020, the number of job postings in China declined by 24% year-on-year (YoY), a report released jointly by China Institute for Employment Research (CIER) and online recruiting platform Zhilian shows.

Many companies have halted their recruitment plans due to the coronavirus outbreak, which brought a negative impact on the business of online recruitment platforms such as 51job. The company estimated its net revenue for the first quarter of 2020 to be RMB 725 million to RMB 775 million (USD 104.1 million to USD 111.3 million), a decrease of up to 25% compared to the revenue of RMB 911.9 million in the same period of 2019.


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