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On August 16, Xiaohongshu announced that it would no longer set job levels and simplify the management hierarchy. It is reported that this move is intended to get rid of the "seniority-based" system, build an agile organization, and focus more on creating value for users, customers, and merchants. Specifically, the adjustment mainly includes "no longer setting R job levels", "simplifying management levels", and "appointment system for leaders at all levels".

According to insiders close to Xiaohongshu, the new mechanism focuses more on quickly discovering outstanding talents, more flexibly matching business development, stimulating front-line vitality, and making outstanding front-line employees more visible. The new system aims to implement the organizational concept of "giving self-drive a battlefield and giving success rewards" to better match Xiaohongshu's current business development. It is reported that a group of new leaders have been promoted recently within Xiaohongshu.

In addition, after the adjustment of the job grade system, salaries are more directly linked to the difficulty of the work, and bonuses are linked to the results of the work. According to headhunters in the industry, salary adjustments in Internet companies are mainly related to job grade promotion. Xiaohongshu's move will untie incentives from job grade promotion, which can motivate talents who get results in a more timely and sufficient manner.