Chinese ride-hailing company Didi Chuxing may cut 25 percent of the staff across product technology, ride-hailing and other teams, Chinese technology media 36Kr reported on Wednesday.
Headquarters of Didi Chuxing in Beijing (File photo: VCG)
The 25 percent headcount cut means over 3,000 people may be laid off in Didi, 36Kr reported, adding that the layoffs will be carried out in batches by the end of March.
Didi did not respond to the Global Times' inquiry as of press time.
The company has adopted a "bottom out" elimination system for layoffs, which means personnel graded D had been laid off in previous years. However, staff who were graded C and D in 2018 were both asked to talk with the company's HR, information told 36Kr.
The personnel restructuring aims to improve users' safety, experience and promote efficiencies, which is normal staff optimization, the 36Kr report said.
In 2018, CEO of Didi, Cheng Wei, gave year-end bonuses to staff that were approximately 50 percent of the bonuses awarded in 2017, because the company's performance was worse than expected, media reports said.
"In the first half of 2018, the company suffered net losses of over 4 billion yuan ($584.9 million)," according to an internal company letter sent to the Global Times in September 2018.
Two rape and murder incidents involving drivers draw government and public attention, leading to a clamp down on Didi, making the company rectify issues and implement reforms during the last year.