Victoria Cotton net is exposed to millions of advertising fees to reduce the pressure on layoffs

Does the electric trader hold high the strategy to adapt to the cold winter pioneering business? Following the resignation of staff exposed to job losses in the personal clothing of the cotton net yesterday was handed over to cut off 4 employees. People familiar with the matter said that because of the early advertising too large, cotton has owed millions of yuan advertising, only one advertising agency on the arrears of millions of yuan. Analysts said that the current electricity business staff layoffs are not new, the early appropriate control of investment can avoid enterprises in the capital tense period "Unable to do anything".

Yesterday, the reporter learned that has been laid off, including COO, 6 people in the cotton network again to lose weight, 4 employees, including 2 technicians, 1 market personnel, 1 administrative staff. For example, according to the staff size of the published before, currently employs 50 people.

On the job cuts, William Lim CEO said the company does have a staff adjustment in the near future, is currently actively processing. At the same time, he said the layoffs would continue for some time, but he declined to disclose the exact reasons for the job cuts, saying only that the company was "doing the right thing". According to the employee said, "because the cotton network faced with the pressure of upstream suppliers, the company staff to reduce operating costs."

In addition to what employees call upstream supply pressure, the Cotton Advertiser also said it owed millions of yuan in advertising fees. A cooperation with the cotton-wool advertising agency Mr. Zhang (a pseudonym) said, "See the news of their layoffs, I do not know that the advertising fee can not be returned."

The reporter learned from Mr. Zhang that only one of its advertising costs have reached millions of yuan, he said, "according to my estimate, the current cotton owed to advertising money at least 7 million yuan." According to the staff said, the cotton network part of the partners yesterday to the cotton company debt collection, the company has "mess". In this respect, the cotton net did not comment.

In fact, since 2010 on the line, the Cotton's advertising campaign has never been interrupted. It is understood that last August, Victoria Cotton in the overall launch of Sina million yuan online advertising. The same month with the media to start large-scale building advertising, the use of line under the full force of the marketing promotion model.

Dcci analyst Hongyuan said that companies in the financial crisis if the only job cuts to reduce spending, rather than efforts to open source, such enterprises are likely to continue to do their own subtraction. For the Business-to-consumer Web site that has already incurred arrears, it is imperative to develop the ability to earn income at low cost. Electric dealers originally rely on extensive type of advertising, spell traffic sales strategy cost too much money, but did not really cultivate their own "internal strength", once the lack of advertising resources, there is no source of income, this is the biggest problem.