Zhaopin High Level dramatic adjustment

Sina Science and Technology July 26 morning News, Human resources service provider Zhaopin in one day staged two recall. The dramatic result is an internal mail announcing the dismissal of top executives such as CTO and Vice President, and a few hours later, another letter from the board's behest announced the dismissal of CEOs, COO and other executives.

In the afternoon of Friday, a letter issued to all staff in the name of the Zhaopin company, announced the removal of the CTO Yu Yuntong, Vice President Lou Yihua, technical director of the Zhang Day all duties, to be dismissed, but did not disclose the specific reasons. In addition, Zhaopin announced that the CFO Guo Jianmin resigned from the company for personal reasons.

A one-time announcement of 4 senior executives left a high level of concern, but more dramatically, only a few hours after the mail was sent, Zhaopin employees received a letter from the board that announced the resignation of four other executives, including CEO Peng, COO Reiveming.

When the first mail out, Sina Technology has contacted Zhaopin public relations, the relevant personnel for the authenticity of the message to confirm. It then said that executives and the board of directors had been in the meeting and said no comment on the second email. However, the person said that once the company discussed the decision, it will be the first time to disclose the truth.

Some analysts believe the two emails reflect the contradictions between the chief executive Peng faction and the CTO-dominated faction, which may be supported by the board and investors. One of the big reasons for this paradox is that Zhaopin's founder team faded out early, and management was prone to confusion in the case of foreign-controlled ownership.

In fact, this is not the first major personnel adjustment. Last August Zhaopin announced that former CEO Liu resigned from office, and that the new CEO was replaced by the original COO Peng. The industry's view was that successive losses had left investors without confidence.

In July 2008 Zhaopin received a 110 million dollar investment from Australia and New Zealand's largest recruitment web site seek and the Australian investment bank Macquarie, which was at the expense of further dilution of Zhaopin shares, and now that the equity structure of the Seek, Macquarie and Zhaopin shareholders is 4 : 3:3.

Public information shows that by December 31, 2008 seek in the Zhaopin stake has been close to 56.2%, meaning that seek has been zhaopin dominant. Zhaopin was profitable in the fourth quarter of last year, according to data released by Peng earlier this year in a media interview. (Tracy)