Didi Chuxing is laying off a quarter of its 13,000 employees to cut costs, 36Kr, KrAsia’s parent company, revealed on Wednesday. Didi is China’s largest ride-hailing company.
Staff members who received a C or D rating in their year-end performance evaluation have been asked to leave “voluntarily”, 36Kr was told by sources who wished to stay anonymous. The layoffs will come in waves, and last until March.
Didi claims that the dismissals are part of a normal restructuring as the company reshuffles its corporate structure to provide a “safer” experience for users.
The company added that there are new openings for safety-related technical positions, management positions, as well as for managing positions that oversee drivers.
In a letter circulated among Didi’s staff, the company indicated that it had incurred a loss of RMB 4 billion (US$600 million) in the first half of 2018. The company came under scrutiny last year after drivers that were registered on its platform sexually assaulted and killed female passengers.
Editor: Brady Ng