the layoff of over 100 employees + “leading sheep” programme

 May24

Micro Connect, a Macau-based financial market platform, is planning to dismiss or reassign a quarter of its employees, following the recent announcement of what some described as a “leading sheep” programme.

On 22 May, Micro Connect’s co-founders Charles Li and Zhang Gaobo announced the layoff of over 100 employees in an internal letter, citing reasons such as a transition to a new development strategy, the need for operating cost control, and management missteps.

A spokesperson for Micro Connect told Macau News Agency (MNA) on Thursday that the decision was not related to the ‘company’s operational or financial conditions’ but rather stems from a ‘business transformation and structural change’. “Our business model is transforming so we have to make this difficult decision,” the spokesperson empathised in a phone call.

In the letter, the co-founders explained that the company is currently fully focused on developing the financial market platform, Micro Connect Macao Financial Assets Exchange (MCEX), and is moving away from the ‘high-speed investment model’ that relies on its own funds.

“Consequently, the manpower and resources previously allocated for developing the investment model did not align with the new stage of development and tasks.”

Earlier this month, Micro Connect drew controversy with what some described as a “leading sheep” programme. The programme required company staff to invest RMB1 million (MOP1.1 million/US$138,111) using their own money, while the company pledged to inject a corresponding RMB9 million into the programme.

Micro Connect claimed that the initiative was part of its phase 2 development strategic plan, which aims to ‘foster employee growth as lead investors’ and enabling them to establish special purpose vehicles to ‘explore investment opportunities across various fields’.

The spokesperson rejected allegations that every team member was required to make a contribution, stressing that it was just an ‘incentive programme’.

The funds contributed by 20 employees so far should be considered ‘more like a deposit rather than investment’, she said, without providing any specific time frame for their duration.

She also confirmed to MNA that the employees made redundant did not participate in the programme, ruling out any links between the two events.

https://www.macaubusiness.com/job-cuts-not-linked-to-incentive-scheme-micro-connect-spokesperson/

+ https://www.plataformamedia.com/2024/05/31/micro-connect-corta-100-empregos-em-nova-reestruturacao/


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