Didi Chuxing Insiders Deny Speculation About Huge Layoffs
Zhang Yushuo
DATE:  Feb 01 2019
/ SOURCE:  yicai
Didi Chuxing Insiders Deny Speculation About Huge Layoffs Didi Chuxing Insiders Deny Speculation About Huge Layoffs

(Yicai Global) Jan. 31 -- Insiders at Didi Chuxing have rebuffed online speculation and Chinese media reports that say the ride-hailing giant is considering shedding as much as a quarter of its headcount.

The Beijing-based company has made major structural adjustments and reorganized its employee system to achieve security and efficiency targets, technology media 36Kr reported, citing unidentified corporate sources. They described it as "normal personnel changes."

A number of sources suggest that Didi recently kicked off a round of massive layoffs.

Twenty-five percent of employees will go, especially those in the product technology and online ride-hailing teams, two departments that failed to make much progress in the past year, according to the sources. It is reported that the layoffs will be carried out in batches and could last until March.

If true, about 3,000 of Didi's 13,000 staff would need to leave the company.

Last year was not a good one for Didi. Its financial performance was hit after the company beefed up outlays on safety following the murder of two passengers, which saw it become the focus of a government probe into safety across the car-hailing sector. Didi introduced all-in safety functions, suspended its Hitch service, cancelled its annual party, halved or withheld year-end bonuses and even dismissed staff to cut expenses and prepare a better story for investors.

Didi will let go workers who came bottom in their performance reviews, according to a person familiar with the matter, who added that human resources managers will persuade staff graded C or D to leave. Previously, only those rated D were dismissed.

The company's year-end bonus is quite generous, with workers scoring high marks getting a reward worth the same as six to 12 months of salary. Employees had deemed the bonus cuts as a layoff in disguise.

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Keywords:   Ride-hailing,Didi,layoff