(Yicai Global) Feb. 2 -- Chinese check-out free convenience store operator Xingbianli has recently optimized and restructured its workforce and resources in a bid to achieve more sophisticated operations, the company told Yicai Global, commenting on its massive job cuts.

Xingbianli, a retail website operated by Ojiao Network Technology (Shanghai) Co., has initiated substantial job cuts recently, prompting online complaints from some employees. In an online article titled "As one of Xingbianli's earliest employees, I am fired," one employee wrote, "I am one of Xingbianli's earliest employees and will be among the penultimate batch of workers to leave the company. I just received a message that a large number of employees will leave the firm by Friday [Feb. 2]. Except in key cities such as Beijing where operation and maintenance personnel will stay, business units in other cities will be disbanded."

Xingbianli needs to quickly adjust its business expansion plans and internal management systems to adapt to the industry's characteristics and the market's development, the company said in response, adding it will optimize the allocation of human, financial, and physical resources in light of market changes and future development trends to achieve sophisticated operation.

Xingbianli is operating normally and will carry out more sophisticated operation as planned, the company said. It will further strengthen its ability to develop, produce and select products and will develop supply chains and promote sophisticated operation across the board, it added.

Established last June, Xingbianli has already set up more than 10,000 stocked smart-shelves in just six months, covering both first-tier and second-tier cities. Xingbianli mainly operates staffless convenience shelves in offices and smart self-service convenience stores. It has opened eight such stores in Shanghai.

Such rapid development requires capital investment. Xingbianli has raised CNY380 million (US60.4 million) in round A1 financing after completing its angel investment funding, in which Lightspeed China Partners partook.

However, problems emerge as staffless retail becomes popular. Some unmanned retailers believe they also face challenges in controlling stock losses and managing stock-keeping units on top of high capital demand as their back-office systems require heavy investment.