Domestic luxury shopping website Shangpin.com conducted massive layoffs around the Chinese Lunar New Year due to a suspension of its venture capital funding, Beijing Business Today reported Tuesday, citing former employees of the website.

The number of employees at Shangpin.com's Beijing headquarters has shrunk significantly, former employees said. "By the end of last year, there were already rumors around the company that there will be layoffs starting from the beginning of this year. But the company didn't say how many of us will be reduced," said one unnamed employee.

The website received US$10 million and US$ 50 million respectively in funds during its second and third rounds of funding. However, investors suspended additional funding because Shangpin.com previously promised a revised edition of the site but failed to deliver after a year, the employee who asked not to be named said.

Meanwhile, Shangpin.com has suffered from a high turnover rate in its middle-management. "Some [managers) were fired, but a large proportion of them voluntarily resigned," the above-mentioned employee said.

China's business press carried the story above on Tuesday.

Contact the writer of this story at: yanp@china.org.cn.

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