Everyone shrink the wireless service is accused of a disguised redundancy future or betting game

A few days ago, renn.nyse The news that the Wireless business division had slashed jobs. In this respect, everyone company officially denied "layoffs", and said that "the Wireless division of organizational Adjustment is the company's internal entrepreneurial mechanism of the attempt, there will be some employees affected."

"The scope of the adjustment is mainly in the wireless division of the 3G department." Yesterday, one of the company's senior executives to the "First financial daily" reporter confirmed that the 3G department staff will be transferred internally to the game, glutinous Rice Network and other business departments, but do not rule out some of the staff active separation. But the executives also "hint" that "general" jobs will be lower than the number of people who need strong expertise in some jobs.

And everyone game, glutinous rice net compared to the wind, everyone wireless business despite the large investment, but the development is not smooth, the effect is very little, and even the capital market directly express to everyone wireless see empty. Some insiders believe that the wireless business for everyone to adjust or pay for its performance.

Give up wireless?

"Adjustment Storm" in the wireless business division, the establishment of less than six months. January 16 This year, the company officially announced the establishment of an independent wireless business division, focused on the mobile Internet in the field of new product development and operations, including Jingwei Card pass and other mobile products.

Last year, Chen, CEO of Renren, famously shouted out the slogan "A Battle of three battles" and then adjusted the organization of Renren, tilting the company's focus to wireless. Among them, "a battle" refers to the introduction of one or two killer applications, trying to find the mobile internet "ticket."

But so far, Renren has released two new mobile applications, respectively, the main voice and photo social "pop" and "Meimei", has not yet shown a "killer" side, as for the Jingwei card pass, it is almost a marginal product.

"Previously, everyone has been layout including a variety of app applications in multiple projects, trying to shift strategy and investment focus to the wireless internet." "The senior executives told reporters that although there are already many products in the incubation stage, but can not be avoided is that the development of mobile Internet is too fast, part of the early planning project has missed the best time window, had to be abandoned."

Another company responsible for research and development also confirmed that, in accordance with the general practice of product development, once a project has stalled or been cut off, the relevant developers will be adjusted to other positions because the wireless division can not digest, flow to other departments is an inevitable choice.

However, the two executives did not disclose the number of employees involved in the adjustment, so the industry questioned its disguised layoffs.

"The wireless division's staffing is essentially a contraction of the wireless business," he said. This is also a helpless choice. An executive at DCM, an early investor in everyone's company, said that in fiscal year 2012, Renren had a net deficit of $75 million a year, while its wireless business was overheating. Under the pressure of great performance, the wireless service with little effect must be adjusted to give more confidence to the capital market.

The DCM people at the same time pointed out: At present, Ali, Baidu and other traditional internet giants, is launching the Mobile internet Field "ticket" competition; as an up-and-comer, the company's wireless business did not grab the best time window, has not been able to explore a better profit model, but the business contraction does not mean More consideration may be to avoid its sharpness.

or betting games

Beijing time May 14, Renren will announce the 2013 Q1 Financial report after the closing of the U.S. stock market. While Wall Street analysts expect its Q1 revenue to exceed expectations, it will grow 41% per cent year-on-year. However, according to the company's 2012 annual earnings, only glutinous rice network and game business is one of the few bright spots: glutinous rice net revenue increased 150% Year-on-year, game business annual revenue increase of 113%, online game annual revenue of 90.2 million U.S. dollars, has occupied the overall revenue of the company about half.

The above mentioned Chen "three Fights", then is to speed up everyone game split listing, glutinous Rice network to do group buying industry first and expand the Jingwei business card Qualcomm high-end commercial users. According to him in March this year, the game is about 3 million paid game users, pay the user rate of about 6%~7%, but there is a long distance from the split listing.

On the other hand, even though quarterly losses have been narrowing, the 2012-year net loss of the glutinous Rice Regiment, which everyone hopes for, still exceeds the net revenue scale. Therefore, many analysts believe that everyone in the adjustment of wireless business, the business of the most important will be the game, which is the fastest way to bring cash flow.