Why Are iQIYI Shares Trading Lower Today?

iQIYI Inc IQ had begun laying off employees on December 1, touted as a historic layoff, Pandaily reports from Sina Tech.
The round of layoffs will likely continue after the Spring Festival.
The layoffs aim to increase profitability to focus on content and technology, refine cost management and flatten the company’s overall structure.
As a result, iQIYI laid off multiple middle-level (director-level) employees. The layoff included some senior employees and older employees with higher salaries.
Expense-oriented departments, like marketing, delivery, and channel cooperation, saw a higher proportion of layoffs, from 30% to 50%.
iQIYI laid off almost all the staff of iQiyi Research Institute and iQiyi Game Center.
Further, iQIYI will merge short video products with other products, and only 40% of the staff will stay.
Independently-run iQiyi Smart has a relatively lower layoff ratio compared with the spending departments.
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Price Action: IQ shares traded lower by 3.93% at $5.99 on the last check Wednesday.