On December 22, it was reported that a Mogu Street employee revealed on a social platform that Mogu Street was undergoing large-scale layoffs. According to the news, Mogujie’s layoffs this time include as many as 80% of the layoffs in the technical department and about 30% of the overall layoffs. There are only 3 people left in the operation and maintenance department and only 2 people in the product position.
“There are indeed layoffs.” On the same day, Liu Liang (pseudonym), an internal employee of Mogujie, told reporters that 80% of the ratio should be added to the product department, but the core operations and other department personnel remained unchanged.
Liu Liang said frankly: “Mogujie’s existing system infrastructure is too complex and needs to be streamlined so that it can focus more on core business and reduce maintenance costs. Colleagues who were laid off also expressed their understanding and received compensation of ‘N+1.5’.”
On the evening of December 23, Mogujie, which was caught in the “layoff crisis”, also announced its financial report for the first half of fiscal year 2022. Since Mogujie’s fiscal year is not synchronized with the natural year, the reporting period of this financial report covers the second and third quarters of this year. The third quarter totals six months.
According to the financial report, in the six months ended September 30, 2021, Mogujie achieved operating income of 170 million yuan, a year-on-year decrease of 30.8%, and a net loss of 412 million yuan, compared with 183 million yuan in the same period last year, a year-on-year expansion of 125.14%.
According to data, Mogujie was founded in 2011. It first started through social networking to attract traffic to Taobao. Later, it was blocked by Taobao and was forced to transform into an e-commerce platform. Recently, it has fully transformed into a live broadcast e-commerce.
For e-commerce platforms, GMV is a barometer that reflects business conditions. Judging from the published data, Mogujie’s GMV in the first half of fiscal year 2022 was 5.454 billion yuan, a year-on-year decrease of 12.5%, of which the GMV brought by live broadcast was 4.972 billion yuan, a year-on-year increase of 8.5%, accounting for 91.2% of the total GMV.
The decline in transaction volume has also inevitably had an impact on the company’s revenue.
In the six months ended September 30, 2021, Mogujie’s commission income was 117 million yuan, a year-on-year decrease of 24.3%; marketing service income was 13 million yuan, a year-on-year decrease of 69%. Mogujie explained that this was mainly due to the company’s The business structure has been adjusted to fully focus on live streaming e-commerce, with anchors and their agencies assuming the company’s marketing and promotion functions.
In addition, during the same period, due to the decrease in user loan service fees, Mogujie’s financing solution revenue was 21.5 million yuan, a year-on-year decrease of 10.4%. Due to the decrease in technical services, the company’s other income also increased from 24.8 million yuan in the same period last year. A year-on-year decrease of 26.8% to 18.2 million yuan.
At present, the company officials have not publicly responded to matters such as layoffs.
However, in the latest financial report, Mogujie’s research and development expenses for the six months ended September 30, 2021 were 45.2 million yuan, a year-on-year decrease of 20.2%. The company pointed out that this was mainly due to the decrease in salary costs and leasing expenses, or may also be due to side effects. This confirms the decrease in Mogujie’s technical staff.
Chen Qi, founder and CEO of Mogujie, said in the financial report that looking forward to the future, “We will continue to work on optimizing our product portfolio and providing customers with more fashionable and high-quality products. We will also focus on expanding and leveraging Mogujie’s many years of The accumulated capabilities and experience in serving its merchants provide effective solutions for brands in different channels to achieve value and growth.”
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