JD.COM is slashing salaries for about 2,000 managers by 10 per cent to 20 per cent and diverting some of the savings towards a raft of employee benefits, a person familiar with the matter said.

Billionaire JD.com founder Richard Liu will donate 100 million yuan (S$19.3 million) of his own money towards staff welfare, the person said, asking not to be identified because the moves haven’t been announced. China’s largest online retailer after Alibaba Group Holding will set up a 10 billion yuan fund intended to help employees, including at recently-acquired logistics service Deppon.

JD’s decision comes days after Xi Jinping reiterated a nationwide drive towards “common prosperity”, a concept that’s pushed tech billionaires and cash-rich companies to set up programmes to distribute wealth. The move was first reported by Chinese online media, citing an internal memo.

Liu stepped down this year as chief executive officer of China’s No 2 online retailer, joining tech tycoons that exited top management roles after Beijing’s sweeping internet-sector crackdown. The entrepreneur will focus on longer-term strategies while mentoring younger management, JD said at the time. He would also contribute to the revitalisation of rural China, JD said, a priority of Xi’s agenda. BLOOMBERG