SenseTime Lays off Employees in Multiple Departments
On August 28th, recently, multiple current and former employees of SenseTime confirmed that the company is undergoing another round of layoffs, involving some departments, with a requirement for some to leave within one week.
Several employees of SenseTime have stated that the scale of this round of layoffs is relatively large. An employee from the Smart City and Business Group (SCG) mentioned that their department has experienced a reduction in staff by approximately 10% to 15%, the Quality Center under SCG has been dissolved, and the task of product quality inspection has been assigned to various teams. Another SCG employee mentioned that some products, regardless of profitability, have transitioned into maintenance mode without further development. An employee from the Intelligent Industry Research Institute stated that this round of layoffs affected approximately 10% of the institute’s workforce.
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The above-mentioned employees stated that the compensation standard for this round of layoffs is “N (one month’s salary per year of service) + 2”, plus payment of September social security. For employees whose contracts are not renewed upon expiration and fresh graduates, the compensation is “N+1”.
In response to this, SenseTime stated: “As a rapidly developing technology innovation company, SenseTime focuses its resources on strategic growth areas including general artificial intelligence. The company adjusts its strategies according to market changes and its own development status, optimizing organizational and talent structures to better meet business needs. Currently, the overall development of the company is good, and it will continue to attract outstanding talents from society and universities. SenseTime has full confidence in the long-term value and prospects of the group.
According to the financial report of SenseTime, the company’s total revenue in 2022 was RMB 3.809 billion (USD 520 million), a year-on-year decrease of 19%. The gross profit was RMB 2.542 billion (USD 350 million), with a gross profit margin of 66.8%. The net loss amounted to RMB 6.093 billion (USD 840 million), and the adjusted net loss was RMB 4.736 billion (USD 650 million).