Feb 15, 2019 (China Knowledge) - Ride hailing giant Didi Chuxing has announced that it will be cutting up to 2,000 jobs, making it one of the largest layoffs in the Chinese technology sector in recent years.
The company will be re-evaluating its business and initiating the cuts which represents about 15% of its workforce where needed in order to streamline its business. At the same time, the company has also said that it will be looking to hire another 2,500 staff in other areas such as international expansion, safety and product engineering this year.
Didi which reported losses of over RMB 10 billion for its fiscal year of 2018 saw its troubles begin when two of its passengers were murdered in separate cases involving its drivers last year, prompting a safety backlash against the company.
Regulators in the country has since started to crack down on the types of cars and drivers allowed on the company’s platform, greatly reducing the pool of available rides and causing wait times to surge. At the same time, rivals looking to take advantage of the current situation to enter the market such as Meituan-Dianping have also emerged, forcing the company to contend with new competition.
The scale of the job cuts initiated by Didi also further highlights the troubles faced by tech startups in China recently as venture capital funding dry up and companies having to face a cooling Chinese economy lead to greater uncertainty in the sector.
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