INTERNATIONAL - Didi Chuxing will lay off 15 percent of its staff or about 2,000 people this year, a source said, marking the ride-hailing firm’s first major cut back as it grapples with regulatory scrutiny and public backlash over the murder of two of its users.
Didi CEO Cheng Wei said at a meeting with management that the firm would focus on core mobility services and cut business units considered not critical to its main ride-hailing business in 2019, according to the source familiar with the matter.
But the Chinese ride-hailing giant will aim to hire more than 2,000 employees to focus on safety technology, product engineering and international expansion with the goal of maintaining its overall employee count, the source added on condition of anonymity as the information is not public yet.
A Didi spokeswoman declined to comment. Reports on possible job cuts at the company began to surface in late January.
Didi has been working to address consumer and government concerns over safety after a passenger was raped and killed by one of its drivers in August last year, about three months after another Didi user was murdered. A Chinese court has sentenced a man to death for the crime committed in August.