Latest News:  


Renren denies layoff rumors

By Fang Yunyu (Global Times)

09:22, May 14, 2013

Renren Inc, a leading Chinese operator of social networking services, on Monday denied rumors of layoffs at the firm, saying that it is merely adjusting its wireless business division.

"We are carrying out an internal adjustment, mainly at our wireless business, which means some employees have been asked to change their positions to other businesses, such as our Game Center or group-buying site Nuomi," Wang Yi, director of Renren's public relations, told the Global Times Monday, without providing the exact number of people impacted.

But Wang said that the decision was made to meet the company's push to develop mobile Internet services, and some employees were found unable to create sufficiently innovative products, which led to their being moved.

Internet rumor mills started churning over the weekend, claiming that Renren was conducting massive layoffs in its social networking, gaming and group-buying sections among others and affecting up to 75 percent of the 3G business employees at its wireless division.

Wang denied the claims and said an internal re-positioning of employees is not a layoff.

However, one insider familiar with the matter told the Global Times that it will be impossible for all the affected employees to accept the company's decision, because mobile application development is quite different from group-buying or gaming services.

Earlier this year, Renren launched an independent wireless business division, vowing to focus its efforts and resources on the development of its mobile business.

CEO Chen Yizhou announced that the company would do everything possible to produce a series of innovative products in the "revolutionary" mobile Internet sector.

"But after half a year of trying, Renren's mobile business has not developed along the ideal track, as evidenced by the fact that some apps launched by Renren are not that popular," Dong Xu, an Internet analyst from Beijing-based Internet consulting firm Analysys International, told the Global Times Monday.

Dong said the country's IT companies are still at the stage of fighting for market share in the mobile Internet sector, which requires a large amount of investment with small returns.

"Giants like Tencent Holdings have the continuous capital flows to support mobile business for years to come, while Renren has to consider making money as soon as it can to keep running its business, which makes the mobile business less appealing," said Dong.

According to Renren's financial report, its net loss last year reached $75 million, compared to a net income of $41.3 million in 2011. But gaming and group-buying services contributed nearly 87 percent of the New York-listed company's revenue.

Dong said that for the social networking business, major apps like Tencent's mobile social messaging app WeChat are already occupying most of the market. "It is difficult for other players to acquire big shares now, as the remaining market share is quite small."

Tencent disclosed in January that WeChat saw its users reach 300 million. In comparison, the China Internet Network Information Center said by the end of 2012 the total number of people accessing the Internet via mobile device surged by 18 percent to 420 million.

We Recommend:

Successful women:
Rich and beauty

Sweet 'lovers hotel' making good profit

Americans would shun
a Chinese brand

Jack Ma to resign as
Alibaba CEO: Video

Int'l auto show kicks off in SW China

Top 10 most profitable
public companies

Sony releases super
slim table in Hong Kong

Spring hopes maid themes will draw numbers

Quake-hit ebony carving struggling to recover

Email|Print|Comments(Editor:ChenLidan、Ye Xin)

Leave your comment0 comments

  1. Name


Selections for you

  1. U.S. nuclear-powered warship

  2. Female special operation members

  3. Humayun's Tomb in New Delhi, India

  4. Red Dress Run 2013 in Beijing

  5. Levitating

  6. Shanghai to improve grassroots healthcare

  7. Photos of 19th-century Beijing to be auctioned in London

  8. Beijing claims title of cheerleading championship

  9. 8th Shenzhen Int'l Brand Underwear Fair

  10. Rain, snow may eat into grain harvest

Most Popular


  1. Park-Obama summit cements alliance
  2. Disclosure delays help fuel online rumors
  3. Yuan appreciation nears limit: experts
  4. Renaming 'Arab Spring' cannot hide prejudice
  5. Negative forecast leads Rio Tinto to lay-off
  6. Suffer the children, suffer the country
  7. China, India have wisdom to handle sensitive issues
  8. Ending 'too big to fail' going to be hard work
  9. PwC: Environment hard for Chinese banks
  10. The Rise of the South

What’s happening in China

Levitating Beijingers

  1. Transsexual allowed to marry her boyfriend
  2. H7N9 case reported on Chinese mainland
  3. No fairytale ending for amusement park
  4. Give mothers a break: report
  5. Number of left-behind children passes 60m