【Epoch Times News on November 29, 2024】Chinese financial technology company Futu Holdings has recently confirmed a 5% layoff. On November 28, the laid-off employees, dissatisfied with the severance package, staged a protest near Futu Holdings’ offices in Hong Kong and Shenzhen.
According to reports from “Hong Kong 01”, the laid-off employees wore white T-shirts with “Futu Securities Bloody Layoffs” written on them, holding banners that read “Inducing signatures, fishing for law enforcement”, “Illegal dismissal”, “20 billion in profits, unwilling to compensate with a few tens of thousands”, among others, protesting outside the Futu Securities headquarters in Hong Kong’s Central district and the Futu Science Park in Shenzhen.
The employees stated that the main reasons for the protest were dissatisfaction with the severance package and the sudden layoffs at the end of the year. The company did not compensate them as promised verbally with 13 months’ salary and year-end bonuses.
According to leaks on social media last week, Futu planned to lay off 40% to 60% of its workforce by the year-end, with employees being asked to leave immediately after a brief conversation, without handover, transition period, year-end bonuses, 13th-month salary, or service bonuses. Another employee verified to be from Futu also mentioned, “One minute a colleague was discussing requirements, the next minute they were called into the meeting room and left after packing.”
In response, Futu’s official statement previously to Interface News clarified that the rumors of substantial layoffs were untrue. However, the company acknowledged that it was making organizational adjustments to further expand its overseas business, with personnel changes accounting for approximately 5% of the total workforce. According to Wind data, as of the end of last year, Futu Holdings had nearly 3,200 employees. The layoffs this time involved departments such as information technology, internet, and product research and development.
Regarding the protest by the laid-off employees, a spokesperson for Futu Holdings responded by stating that the company strictly adheres to local laws and regulations in its handling processes, while also attaching great importance to the needs of the individuals involved. Communication channels have been arranged to provide appropriate assistance.
Reportedly, within the past quarter, Futu has expanded its physical stores in Hong Kong with two new locations in Tsuen Wan and Mong Kok, and unveiled a new store in Causeway Bay in October, in addition to moving to a larger headquarters in Central in April, increasing its offline service points to a total of 5. Furthermore, in terms of overseas markets, the third-quarter report shows that Futu has increased its partnerships with global financial institutions to 91.
However, according to industry insiders cited by Hong Kong’s “Ming Pao”, Futu’s investment return from overseas expansion fell short of expectations, which might be a major reason for the layoffs. Despite having a significant number of local clients overseas, the question of whether the substantial expansion can attract valuable customers remains uncertain.