NYE-listed 58.com has acquired Chinese recruitment site ChinaHR. (Photo : Reuters)
After a week of speculations and rumors, China’s largest classified-ads platform 58.com has confirmed on Friday that it has acquired the recruitment site ChinaHR, who has been financially struggling for the recent period, the Global Times reported.
The sum of the acquisition is not yet disclosed.
Yao Jinbo, 58.com's CEO, said that ChinaHR has been a well-known firm in the Internet recruitment sector, also lauding the firm's operating history of 18 years.
Despite the move, ChinaHR will continue its operation under the same name.
Meanwhile, following the acquisition is ChinaHR's mass layoff of hundreds of its employees. The laid-off workers received a letter on Friday about the news and the means of their compensation.
According to the letter, the workers will receive N+2 compensation, N being the number of months a worker has stayed in the company. The first payment will be paid at the end of May, while the rest, at the end of August.
The letter also stated that 58.com wants to hire most of ChinaHR's employees in order to sustain the firm's business development and growth. The classified-ads platform also said that those that they will hire can still receive the N+2 compensation.
58.com jobs will start on May 14, while ChinaHR workers will have their last day on May 13.
Market analysts view the acquisition as a wise move for the financially troubled ChinaHR, citing 58.com's significant share in the market.
In Oct. 2013, 58.com was listed in the New York Stock Exchange. Last year, it has received an investment worth $736 million from the Internet giant Tencent.
