BRIEF: Autohome slashes headcount as revenue sags
Car-trading services provider Autohome Inc. (ATHM.US; 2518.HK) on Thursday reported its revenue slumped 10% in the first quarter, as the company cut about a fifth of its workforce over the last year amid ongoing weakness in the Chinese auto market.
Autohome reported revenue of 1.45 billion yuan ($201 million) for the three months to March, down from 1.61 billion yuan a year earlier. Revenue from its media services fell 26% to 242 million yuan, while its leads generation services fell 11% to 645 million yuan. The company’s net income fell 10% year-on-year to 341 million yuan from 380 million yuan.
As its business stumbles, Autohome has been steadily cutting headcount to control its costs. It had 4,345 employees at the end of March, down 20% from 5,420 a year earlier. Autohome’s U.S.-listed stock fell 0.8% on Thursday. The shares are down about 3% this year.
By Doug Young
To subscribe to Bamboo Works weekly free newsletter, click here
