On the afternoon of October 11, it was reported that an employee of Hikvision disclosed recently that the company is currently undergoing a large-scale organizational adjustment. 32 R & D regions have shrunk to 12, and only a few core regions will be retained, and the rest will all be optimized out, which is expected to involve more than 1,000 people. Regarding this adjustment, Sina Technology verified with Hikvision, and as of the time of press, the company has not responded yet.
But currently, some laid-off employees of Kanghaiwei Vision have confirmed this matter to Sina Technology. The above employee pointed out: This time it is a national regional contraction, and there will be N+2 compensation for layoffs. Moreover, according to several people labeled as Hikvision employees who disclosed that: I have also received a notice of being laid off, among which the R & D department is the hardest hit area, and regions such as Hunan are gone, but areas like Hangzhou, the headquarters, have not started yet.
Sina Technology statistics found that since its listing in 2010, after maintaining a high-speed performance growth for nearly 10 years, in recent years, there have been situations of declining revenue and net profit. In 2022 and the first three quarters of 2023, the growth rate of Hikvision's net profit has significantly declined, and in the first half of this year, Hikvision once again experienced a year-on-year decline in net profit.
Among them, Hikvision achieved revenue of 23.4 billion yuan in the second quarter of 2024, increasing by 9.5% year-on-year, lower than market expectations; the net profit attributable to the parent company in the current quarter was 3.1 billion yuan, decreasing by 10.7% year-on-year, lower than market expectations. The decline in gross margin and the growth of expenses have led to a situation where the company has increased revenue but not profit.
In terms of business performance specifically, the growth of Hikvision's performance mainly comes from innovative businesses. The large and medium-sized enterprise group (EBG) and the small and medium-sized enterprise business group (SMBG) have increased but not by much, while the domestic public service business group (PBG) has even shown a nearly double-digit decline.
Some industry institutions have estimated Hikvision's performance forecast for the first half of 2024, and the proportion of software business in the company's revenue has dropped to 20%.