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Didi to lay off 20% of workforce: Report

Caixin reported that Didi Chuxing Technology Co., a Chinese online car-hailing giant, plans to reduce its overall workforce by 20%. The layoff notice will be completed by the end of February.

In 2021, Didi was repeatedly entangled in a storm of public opinion, from antitrust fines to the founder’s background to information security.

On June 29, 2021, Didi was discreetly listed on the New York Stock Exchange, with no loud advertisements or celebrations, but that was no barrier to getting unwelcome public attention.

Didi became the second-largest Chinese stock offering in the U.S. after Alibaba. On June 30, 2021, the company was listed under the stock ticker on the NYSE. Didi raised $4.4 billion at a nearly $70 billion valuation.

But on July 2, 2021, the Cyberspace Administration of China (CAC) announced a cybersecurity review of Didi, in which new user registrations would be suspended. On July 4, 2021, the CAC announced that the Didi app would be removed from store shelves.

Didi’s share price has plummeted since then. Didi’s IPO was valued at $14 a share, and its market value shortly hit $80 billion. But Didi’s share price fell to $5.30 on Dec. 24 of last year, reducing its market value to $25.6 billion.

As of closing time on Feb. 14, 2022, Didi closed at $4.28 per share, with a market value of $20,643 billion.

Not only Didi, but since the end of last year, Internet companies such as Baidu, iQiyi, ByteDance, Station B, Mogujie, and Kuaishou in mainland China have all fallen into a wave of layoffs.

Baidu laid off its entire gaming division and 90% of its live-streaming business staff. And Baidu-owned video streaming platform iQiyi has cut jobs by more than 30% in high-cost departments like marketing and distribution. In addition, after the Chinese regime compelled tutoring firms to become non-profit organizations, ByteDance let go over 1,000 staff in its online education division.

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