Asian Tech Press (Dec 1) -- Chinese online video platform iQIYI Inc., the country's answer to Netflix, is cutting 20-40% of its workforce, one of its employees revealed.

An iQiyi employee told the media on Wednesday that the company is currently laying off employees, with the layoff ratio ranging from 20% to 40%.

Severance payment is temporarily issued on the principle of "N+1", "but the layoff policy is still in flux, and there is uncertainty about how much (the company) will pay out exactly," the employee said.

According to China's Labor Contract Law and relevant regulations, "N+1" refers to the way the employer pays economic compensation, "N" is the number of years the employee has worked at the company, and "+1" is an additional month's salary paid.

Several laid-off employees exclusively revealed that it was the largest round of layoffs in iQiyi's history. Nearly all employees in some departments have been dismissed, and even profitable departments such as content and smart hardware have layoff targets.

As of press time, iQiyi has no response yet.