Didi Chuxing Mulls Layoffs – The Information (paywalled)
What happened: Chinese ride-hailing company Didi is reportedly mulling layoffs. While the move has not been finalized and figures may change, the company is looking to cut headcounts in some departments by as much as 20%. Staff from support departments including human resources and marketing will be the worst affected. The company currently has more than 10,000 employees around the globe.
Why it’s important: Didi, along with other ride-hailing and ride-sharing services in China, has had to deal with increased regulation following two high-profile murders of passengers that were using its platform. The company has since imposed and enhanced a number of safety features, but the incidents caused government and public backlash. As a result of tightening regulation, the pool from which the company can select drivers has shrunk. Didi has also fallen victim to China’s slowing economy. In December, the company cut its employees bonuses by 50% following its poor performance.