Spoiler alert! Hikvision! Compensation N+2

Recently, the organizational adjustment at Hikvision has attracted widespread attention. An employee revealed that the company will shrink its 32 research and development regions to 12, affecting over a thousand employees. Employees who have been laid off have confirmed this news, stating that this nationwide restructuring includes the contraction of regional areas, with the research and development department being the first to be affected. For example, the Hunan region has been dissolved, while the headquarters in Hangzhou and other areas have not yet started, and layoffs will come with N+2 compensation.

Tianyancha shows that Hikvision was established in November 2001, with Hu Yangzhong as the legal representative. The registered capital is approximately 9.233 billion RMB, held by multiple shareholders. The company directly holds shares in more than 60 companies and controls more than 80 companies. In 2023, the number of insured persons reached 13,532, indicating its large scale.

Hikvision financial scandal: layoffs. Compensation for N+2 years! Focus on cutting research and development!

Since its listing in 2010, Hangzhou Hikvision Digital Technology Co., Ltd. has experienced a high-speed growth period of nearly ten years, but in recent years it has faced the challenge of declining revenue and net profit. The net profit growth rate for the full year of 2022, the first three quarters of 2023, and the first half of 2024 have all declined significantly. In response to this situation, in August of this year, Hikvision made changes to its management team, appointing former General Manager Hu Yangzhong as Chairman, appointing Xu Peng as General Manager, and appointing Huang Fanghong and others as Senior Vice Presidents. Huang Fanghong stated at the performance briefing that this adjustment is mainly aimed at a younger direction with all executives born after the 1960s exiting. The roles of the Chairman and General Manager are clearly defined, with a short-term transition period. In the long term, the General Manager is responsible for daily operations, while the Chairman focuses on the company's medium and long-term strategic planning and future considerations.

This large-scale organizational adjustment may be a proactive transformation of Hikvision under performance pressure. Contracting the research and development area may be aimed at optimizing resource allocation and improving operational efficiency. The adjustment in management indicates the company's positive planning for future development, hoping to lead the company out of the predicament by injecting new vitality and concepts. However, this adjustment also brings certain impacts to employees. For employees who are laid off, although the severance compensation of N+2 can alleviate economic pressure to some extent, it also means they need to redefine their career direction. For employees who stay, they may face adjustments in job content and responsibilities, as well as uncertainties about the future.

At present, Hikvision has not responded to the organizational restructuring. However, regardless, this adjustment will have a significant impact on the company's future development. Whether Hikvision can achieve performance recovery after the adjustment and return to the path of rapid development remains to be seen.