(Yicai Global) Feb. 21 -- Weibo is conducting a staff shake-up in order to enhance the Chinese microblogging site’s strengths and business focus, an executive in charge told Yicai Global today in response to online rumors of large numbers of employees being made redundant.

“During the re-organization, the company will first transfer eligible employees to other posts,” the exec said. If no suitable position can be found for them, the firm will terminate their contracts and offer financial compensation in accordance with the labor law. It will also try to help them find other jobs elsewhere. No further details were given.

Weibo is implementing large-scale layoffs, according to a netizen who has been identified as a company staffer. Some employees were asked to resign voluntarily, others were summoned for talks, he added. Those that were let go even set up WeChat groups, with the biggest one made up of over 200 people.

Weibo is still hiring for its core businesses and is not reducing headcount in these departments, the exec added.

Advertising has always been Weibo’s main source of revenue, accounting for 86 percent of earnings in the first half last year. However, the number of advertisers has been declining in recent years. There were 800,000 ads placed on Weibo in the first three quarters of 2021, down from 1.4 million in the same period of 2020. As a result, the company’s net profit dived by almost 50 percent in the first half year on year to USD131 million.

It has also fallen foul of authorities for failing to stop users from repeatedly disseminating information that is prohibited by law. The social media platform was fined CNY14.3 million (USD2.6 million) by the Cyberspace Administration of China in 44 separate penalties imposed between January and November last year.

Editor: Kim Taylor