In the first half of 2025, Yonyou Network Technology Co., Ltd. (Yonyou Network) reported a net loss of 945 million yuan (RMB), along with a reduction of 2,178 employees. Analysts attribute this to various factors such as the macroeconomic environment in China, industry competition, and technological transformation.
According to the Semi-Annual Report for 2025 released by Yonyou Network on August 26, the net loss for the first half of 2025 amounted to 945 million yuan, with the attributable net profit to the listed company shareholders also incurring the same loss. The total number of employees decreased from 21,283 at the beginning of 2025 to 19,105 (a reduction of 2,178), representing a 10.23% decrease in workforce. In addition, the average monthly salary of employees decreased from 26,400 yuan in 2024 to 24,200 yuan in 2025, marking an 8.3% decline.
The consecutive losses are putting pressure on the company’s cash flow. Yonyou Network stated in the report that the net cash flow generated from operating activities was negative.
In response to these challenges, Beijing Blueshark Unlimited Technology Co., Ltd., and the financial-focused creator “Blueshark Consumer” analyzed in an article on September 1 that the data indicates Yonyou Network is addressing performance pressures by reducing labor costs through layoffs and salary cuts. This reflects the emergency strategies undertaken by companies facing short-term financial pressures. The decline in Yonyou Network’s performance and the workforce adjustments are not isolated incidents but are the combined result of multiple factors, including the macroeconomic environment in mainland China, industry competition, and technological transformation.
According to data from the National Bureau of Statistics of the People’s Republic of China, the revenue growth rate of the software and information technology services industry slowed to 6.8% in the first half of 2025, a decrease of 2.3 percentage points from the same period in 2024. The demand in the enterprise software market has weakened, especially as small and medium-sized enterprises reduce their digital budgets amidst economic fluctuations, directly impacting Yonyou Network, which focuses on ERP (Enterprise Resource Planning) as its core business. Additionally, the global technology consulting firm IDC pointed out in its Semi-Annual Report for 2025 that the growth rate of the Chinese SaaS (Software as a Service) market declined from 15% in 2024 to 11% in the first half of 2025, putting pressure on the entire enterprise software industry.
Public information reveals that Yonyou Network Technology Co., Ltd. primarily engages in management software, ERP software, group management software, human resources management software, customer relationship management software, and also serves as a provider of enterprise cloud services, management consulting, and talent in management information technology. Its traditional strength lies in large enterprise ERP systems.