ByteDance raises annual bonus for high-performing employees amid restructuring and latest TikTok crisis in US

Employees rated ‘M’ or higher will be rewarded extra payment of between 5 per cent to 15 per cent of the original bonus amount they received
The additional payout will cover a significant portion of ByteDance’s 110,000 global employees

ByteDance

Coco Fengin Beijing

Published: 9:30pm, 29 Mar 2024

Why you can trust SCMP

Social media giant ByteDance has pledged to raise annual bonuses for high-performing employees, as the tech unicorn continues to reduce its workforce and deals with the latest crisis facing its flagship app TikTok’s operations in the United States.

While employees have started to receive their bonuses for the past year based on their performance review, those who were rated “M” or higher will be rewarded extra payment of between 5 per cent to 15 per cent of their original bonus, according to Hua Wei, head of human resources at ByteDance, in an internal email sent on Thursday that was seen by the South China Morning Post.

The firm’s M rating, which stands for “meet expectations”, is the fifth highest of eight classifications that most company workers can achieve. It usually comes with a bonus worth an employee’s three-month salary, according to two ByteDance workers who declined to be identified.

The additional payout, which covers a significant portion of ByteDance’s 110,000 global employees, shall be provided in share options by default. Cash will be offered in certain instances, according to Hua’s email, which said the financial incentive distinguishes employees “who perform better”.

03:10

Protests at US Congress after House passes bill that could potentially ban TikTok nationwide

ByteDance did not immediately respond to a request for comment.

The increased bonus programme shows the lengths taken by ByteDance to retain and attract talent, even as the company continues to restructure its operations this year.

In January, ByteDance adjusted its payroll policy to allow employees to sell their stock options faster, as the firm’s plans for an initial public offering (IPO) remain in limbo. Workers will receive 20 per cent of their total stock awards after their first year of service, up from 15 per cent previously, according to two people briefed on the matter.

Separately, Cainiao Smart Logistics Network this week said it will double the year-end bonus for all employees in its next financial year, a move that is expected to help boost staff morale after parent Alibaba Group Holding scrapped the unit’s IPO plans. Alibaba also owns the Post.

ByteDance to slash 1,000 jobs at office tool unit Feishu to ‘streamline’ operations

Still, ByteDance recently started cutting jobs at enterprise collaboration unit Feishu, affecting about 1,000 employees, according to a Post report on Tuesday that cited a person familiar with the matter.

The company is expected to slash up to 20 per cent of Feishu’s total workforce of more than 5,000, with most of the lay-offs in mainland China, according to the report.

That staff reduction followed ByteDance’s decision last November to retreat from the video gaming industry, a move that involved hundreds of lay-offs at its flagship development studio Nuverse.

That same month, ByteDance conducted a new round of job cuts at Pico, its virtual reality headset unit, that reportedly slashed hundreds of employees.

In the United States, meanwhile, ByteDance faces its next battle in the US Senate, where support for the House of Representatives’ bill that seeks to force the sale of TikTok’s US operations appears mixed and a vote has not yet been scheduled.

Post