According to Bloomberg, Chinese ride-hailing startup Didi Chuxing plans to decrease its entire staff by up to 20% before transferring its shares from the United States to Hong Kong.
According to the article, the majority of Didi’s core business would be affected by the job losses as the firm seeks to reduce spending ahead of its Hong Kong debut. Furthermore, the company’s core ride-hailing operation may face a 15% drop in workforce.
Drivers will be unaffected because they are not formally counted among the company’s employees. Didi has already reduced funding in community grocery purchasing in addition to the plan. Other businesses include Didi Finance, which is growing outside of China, and its self-driving car division will not be impacted as much.
Didi said in December 2021 that it will delist from the United States and relocate to the Hong Kong market after only six months of trading on the (New York Stock Exchange) NYSE in June. On its Weibo account, the firm stated that after careful consideration, it will begin working on the delisting to list in Hong Kong. It provided no more information about Weibo.
Didi conducted its initial public offering (IPO) in the United States on June 30, 2021, but shortly after, the Chinese authorities demanded it to be removed from app stores owing to severe infractions in Didi Global’s acquisition and use of personal information.
According to many accounts, the Cyberspace Administration of China imposed the suspension shortly after the IPO, only two days after the agency indicated it would begin a cybersecurity examination of the firm. The regulator stated that it had instructed Didi Chuxing to correct its flaws in accordance with legal requirements and national standards, as well as to take actions to protect its users’ personal information.