A growing number of Inspur Cloud employees are facing significant salary reductions due to the company's newly implemented monthly assessment policy. Recent reports from multiple employees reveal that the company has begun enforcing a 50% fixed salary plus 50% performance-based pay structure, a dramatic shift from the previous model.
Under this new policy, employees earning a monthly salary of 10,000 yuan could see their take-home pay drop to less than 5,000 yuan after deducting social insurance and housing fund contributions. The vast majority of staff are experiencing pay cuts, and while there is widespread discontent, many feel powerless to challenge the changes. According to the latest payroll results, this performance-based salary adjustment has already taken effect, with most employees witnessing a salary reduction of approximately 30%.
Several employees also disclosed that prior to June 30 this year, the Inspur Group conducted a significant workforce reduction, with Inspur Cloud cutting over 30% of its staff. Some workers have questioned whether this move constitutes a covert form of layoffs.
A document obtained from employees, titled "Monthly Assessment and Salary Structure Adjustment Notice," outlines the new rules. Under the revised framework, monthly performance bonuses are calculated at 50% of the monthly salary standard and are broken down into three dimensions: company, department, and individual. First, Performance Bonus 1: 10% of monthly salary, tied to company profits. If the company posts a loss, this portion is not paid; if profit targets are met, the bonus is calculated based on the profit achievement rate, with a maximum payout cap of 200%. Second, Performance Bonus 2: 20% of monthly salary, linked to department performance. If the department fails to meet its targets, this portion is withheld; upon successful completion, it is calculated according to the achievement rate and indicator weights, also subject to a 200% cap. Third, Performance Bonus 3: 20% of monthly salary, based entirely on individual monthly assessment results, with the payout coefficient determined by the employee's performance grade and score.
Following the implementation of this policy, 50% of affected employees' salaries have been converted into variable performance pay, significantly reducing income stability. Even if employees perform their duties diligently, a company loss would directly wipe out the corresponding performance bonus, severely undermining job security. One affected employee, Li Lei (a pseudonym), expressed his frustration: "Most employees don't understand why the company adopted this performance model, but the most obvious impact is that our salaries have dropped. An employee earning 10,000 yuan a month, if the department fails to meet its goals, even if both personal and company performance bonuses are fully secured, would only receive around 7,500 yuan. After deducting social insurance and housing fund, the take-home pay would be roughly 5,000 yuan."
Li Lei added, "Previously, it was 90% fixed salary plus 10% performance. Now it's 50% fixed and 50% performance, which greatly reduces income certainty. Looking at historical results, most departments rarely meet their performance targets, and the company seldom achieves its goals either. This means 30% of our salary could be deducted. Although there's a 200% bonus cap, it's practically unattainable, so it essentially becomes 0%." He further revealed that the company has already applied this salary calculation method in the most recent payroll, with most employees losing at least 30% of their pay.
As of the time of reporting, Inspur Cloud has not responded to inquiries regarding the scope and specific salary ratios affected by this performance adjustment.
Interestingly, this change at Inspur Cloud is not an isolated incident but part of a broader initiative across the entire Inspur Group. Employees have indicated that Inspur Software has already shifted to a 70% fixed salary plus 30% performance structure in recent months, with the performance portion comprising 14% individual, 6% department, and 10% company components. Many employees resent this adjustment, viewing it as a means of shifting operational risks onto ordinary workers, though they feel helpless to resist.
Alongside these salary adjustments, Inspur Cloud and the wider Inspur Group have also undergone various workforce reductions. A former employee, Xia Lin (a pseudonym), revealed that before June 30 this year, Inspur initiated a large-scale workforce optimization affecting subsidiaries including Inspur Cloud and Inspur Software, with Inspur Cloud experiencing a reduction of over 30%. In June, social media platforms like Xiaohongshu were flooded with posts from Inspur employees sharing their "queue numbers" for resignation procedures, with some images showing more than a dozen people waiting in line before 11:10 AM on a given day.
One employee questioned, "Is the company trying to force us to resign through this method to avoid paying severance?" A lawyer with close ties to Inspur Cloud employees noted, "The number of people coming from Inspur for labor arbitration consultations has noticeably increased recently." He confirmed that while each case varies, the core issues consistently revolve around salary and performance adjustments. According to Article 35 of the Labor Contract Law, any modification to a labor contract requires mutual agreement between the employer and employee. If a company unilaterally forces changes, it holds no legal binding force on the individual. The lawyer suggested that employees facing enforced salary adjustments could consider legal recourse based on their specific circumstances.
Amidst these internal challenges, Inspur Cloud's long-delayed IPO remains a pressing concern. On July 16 this year, CITIC Securities submitted the 17th progress report on Inspur Cloud's listing guidance to the Shandong Securities Regulatory Bureau. However, despite 17 consecutive guidance progress reports, whether Inspur Cloud will ultimately secure IPO approval remains uncertain. The company's executives first signaled intentions to list on the STAR Market in 2019, officially launching the first round of listing guidance in June 2020 and declaring completion just six months later. However, they ultimately failed to submit application materials, ending that initial attempt. Since then, Inspur Cloud has repeatedly submitted IPO guidance progress reports but has consistently failed to obtain acceptance from the Shanghai Stock Exchange.
The repeated setbacks in the IPO process reflect the complex equity structure, business operations, and personnel relationships within the Inspur system. For instance, in May 2020, 100% of Inspur Software Group's equity was transferred to Inspur Cloud, turning the former "parent" into a "subsidiary." Yet in September 2024, Inspur Cloud transferred 51% of Inspur Software Group's equity back to Inspur Group, making them "brother companies" under the same parent. This reversal of equity relationships within a few short years, along with repeated adjustments to business boundaries and asset ownership, highlights the complexity of the group's internal governance.
Multiple guidance reports have consistently identified related-party transactions as a core issue requiring rectification. Inspur Cloud maintains significant hardware procurement dealings with entities within the system, including Inspur Information. Although the guidance institution has claimed these transactions are commercially reasonable, the degree of related-party dependence remains a key focus of regulatory scrutiny. A person close to multiple Inspur business lines admitted, "The internal structure of Inspur is extremely complex with numerous subsidiaries; even most insiders are confused by it."
According to Tianyancha App, Inspur Cloud's primary entity is "Inspur Cloud Information Technology Co., Ltd.," with Xiao Xue serving as legal representative, chairman, and CEO. Xiao Xue was previously elected as a non-independent director on the second board of directors at the 2022 shareholders' meeting and also holds positions as executive president and chief engineer of Inspur Group. With the introduction of this new 50-50 salary policy, some employees have begun questioning Xiao Xue's leadership, sarcastically remarking, "Xiao Xue truly lives up to his title of chief engineer! He's leading everyone into poverty through work." Others have gone further, calling for his resignation, with slogans like "Xiao Xue should step down for his incompetent leadership."
To some extent, this salary and performance adjustment may be a move to compress labor costs and streamline operations ahead of the IPO. However, in the long run, issues related to governance, including the repeated restructuring of equity structures and dependence on related-party transactions, will be the true tests of Xiao Xue's leadership and the ultimate success of Inspur Cloud's prolonged IPO journey.