ipo-failure

#ipo-failure

@chaozuoye: This is hilarious — Xiaohongshu's IPO failed because of layoffs. To make its financials look good for the IPO, Xiaohongshu saved costs by laying off dozens of employees who had stock options. One of them filed for labor arbitration. Xiaohongshu's legal department essentially said: The options were issued by an overseas company, not related to the domestic company. If you want to sue, sue the overseas company. In other words: You sue Lu Xun, what does that have to do with me, Zhou Shuren?...

X AI KOLs Timeline ↗ · 2026-07-06 Cached

Xiaohongshu laid off employees to cut costs for its IPO, triggering option disputes and labor arbitration, which led to Hong Kong Stock Exchange questioning its VIE structure, ultimately resulting in IPO failure.

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