Chinese e-commerce giant Pinduoduo has fired 30 employees, including co-founder Fan Jiezhen, following an alleged physical altercation between company staff and market regulators this month, according to a circulating letter from a dismissed worker.
Reports emerged earlier of a clash during a December 3 inspection by State Administration for Market Regulation officials at Pinduoduo’s Shanghai headquarters. The investigation reportedly involved matters including food safety and a flower-and-cake order transfer platform.
During the inspection, Pinduoduo employees allegedly engaged in multiple physical conflicts with regulators, verbally provoked them and refused to cooperate, leading to police involvement. Staff were reportedly punished for obstructing official duties.
A letter purportedly from dismissed employee Tu Tuohang states 30 people were “violently terminated” as a result, with co-founder Fan fired for “bearing leadership responsibility” and all employees under her also dismissed. Tu, who worked in Beijing, said he was summoned to Shanghai on December 6 and notified of his dismissal without compensation on December 10, while being subjected to a two-year non-compete clause.
The letter describes the mass firing as collective punishment to appease regulators. Pinduoduo has not publicly commented. Earlier reports by Caixin on the incident have been deleted online. The company's U.S.-listed shares fell more than 2 percent after the news emerged last Wednesday.
