(Yicai Global) Feb. 15 -- Beijing Xiaoju Technology, which runs the world's largest ride-hailing platform Didi Chuxing, plans to make 15 percent of its staff redundant as it anticipates a decline in business.

Around 2,000 staff will be relieved of their duties, a company insider told Yicai Global, citing Chief Executive Cheng Wei's speech at a monthly plenary session today. The announcement comes just months after widespread rumors that the firm was planning large-scale layoffs.

There is uncertainty surrounding the security of Didi's capital in future, Cheng added, saying that the company therefore needs to operate more efficiently. The firm reportedly lost CNY10.9 billion (USD1.6 billion) last year, with subsidies for drivers contributing CNY11.3 billion to the deficit.

President Jean Liu, or Liu Qing in Chinese, said management is looking to explore new business models that can provide fair incentives for drivers while also satisfying passenger demand, the source added.

Didi will continue to focus on its travel-related services and work harder to improve security and comply with regulations, the insider added, saying that it will shut down and adjust non-core businesses and lay off employees that are not performing well or whose positions will overlap as departments are consolidated.

The firm also plans to invest more in security technology, offline driver management and international business, he continued. It expects to recruit 2,500 new employees in these areas, offsetting the redundancies and restoring the company's 2018 year-end head count by the end of this year -- about 13,000.

Editor: James Boynton