Image Source: Visual China

BEIJING, April 29 (TMTPOST) — Chinese plastic surgery service provider SoYoung is going to undergo a massive layoff soon, Tech Planet reported.

Some department directors have already started to produce their layoff list, an insider familiar with the matter told Tech Planet. The insider said that his department will reduce its staff from twenty-something to only seven or even six people, laying off nearly 60% of the staff.

Some netizens have previously reported on the professional social networking site Maimai that SoYoung is planning to lay off 40% of its staff. This means around 700 employees out of 1,700 will be let go. There have also been rumors that SoYoung’s office is now empty. However, most of the employees at SoYoung during that time did not sense that the company was planning to lay off its staff.

SoYoung currently employs around 1,800 people, which means several hundred employees will have to leave, the insider told Tech Planet.

The company has denied the rumor, saying that the company is operating its business as usual and continues to recruit talents. SoYoung also revealed that the company has recently appointed several VP-level senior executives.

SoYoung faces many uncertainties in 2022 even if the layoff plan is false.    

The company’s share has been slumping since its public listing in 2019. As of April 28, 2022, SoYoung’s share is trading at US$1.42, with the company valued at US$150 million. In comparison, the company’s market valuation has shrunk by over 90%, losing over 15 billion yuan in valuation.

SoYoung’s earnings report of 2021 fiscal year shows the company achieved revenues of 1.693 billion yuan in 2021, registering year-on-year growth of 30.7%. Net loss was 8.4 million yuan, down by 244.2% year-on-year. Besides struggling with increasing profit, SoYoung is also faced with the problem of losing users. In 2021, SoYoung’s monthly active users were 7.4 million, representing a year-on-year decline of 16.9%. In 2020, the company had 8.9 million monthly active users.

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