On May 20, Chinese video-sharing platform operator Bilibili （哔哩哔哩） disclosed that the company is running modifications in multiple product lines, resulting in subsequent labor cuts.
These product lines include game, overseas operation, occupationally generated video (OGV) outlets and more. The company explaine that it will adopt the approach to reach an agreement with employees on their termination of contracts.
Specifically, the occupationally generative video department belongs to a medium-sized team in Bilibili. In the past two years, the department have contributed significant growth of the company as a value-added service stream. Moreover, as of December 31, 2021, the company's member base grew 39% year-on-year to 20.1 million users.
On the other hand, despite that the revenue growth is significant, the cost of making high-quality content is also expensive. Respectively, in 2018, 2019, and 2020, the company spent CNY 543 million, CNY 1,002 million, and CNY 1,876 million in this sector. At the same time, the company' overall losses continue to increase. As of 2021, Bilibili’s net loss reached CNY 6.8 billion compared to that of CNY 3.1 billion in 2020.
In the rest of 2022, the company disclosed that it will continue to accelerate the subscriber growth and commercialization by improving organizational execution and operational efficiency across all business lines. Its primary goal will shed light into the narrowing loss ratio by the end of this year.