ByteDance to hand out cash bonuses to staff amid US pressure

Platform Industry: ByteDance China company building

ByteDance has said it would hand out cash bonuses to workers working to assist it “overcome challenges posed by the COVID-19 pandemic and changing macro environment”.

Full-time employees who have worked for 26 or more working days between July to August is going to be given a bonus worth half their August base wages, according to a letter from ByteDance to its employees that was viewed by journalists.

“Thank you for your hard work and dedication,” the letter states. ByteDance has said it has over 60,000 employees globally.

The bonus payments could run into hundreds of millions of yuan, based on ByteDance’s hiring advertisements and business sources.

ByteDance affirmed the letter but didn’t provide details.

ByteDance has come under international scrutiny amid concerns about TikTok’s set of personal data and censoring of political content. The US government has said it will prohibit the short video app unless ByteDance sells the apps US operations amid increasing tensions between Washington DC and Beijing.

ByteDance has stated the Chinese government doesn’t have any jurisdiction over TikTok content.

TikTok has confronted challenges in India, in which it was one of dozens of Chinese programs banned in June after a border clash between the countries.

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“The TikTok team and especially the deal team have been working day in and day out,” a company source said, adding staff morale at TikTok was struck by the global challenges as well as the death of its Chief Executive Officer Kevin Mayer who quit after just three months.

ENDLESS HOURS

ByteDance founder and Chief Executive, Zhang Yiming, said in an earlier letter which the staff was working “endless hours” amid the surrounding “noise”.

ByteDance’s cash incentives, that come as many companies face financial pressure due to coronavirus and a slowing economy, was on Tuesday one of the most discussed topics on Maimai, China’s version of LinkedIn.

Late last year, Chinese telecoms giant Huawei Technologies also said it would hand out two billion yuan (approximately $293 million) in cash benefits to employees as a mark of recognition for work in the surface of a US commerce blacklisting.

The team at Platform Executive hope you have enjoyed the ‘ByteDance to hand out cash bonuses to staff amid US pressure‘ article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Jonathan Landay. Editing by Steve Orlofsky.

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