- China's Uber Technologies Inc (NYSE:UBER) counterpart DiDi Global Inc (NYSE:DIDI) looks to reduce its overall headcount by 20% as it pushes ahead with its Hong Kong listing, Bloomberg reports.
- Most of DiDi's core businesses will be affected by the cuts. DiDi aims to reduce expenses ahead of the Hong Kong listing.
- The report adds that ride-hailing may see staff reductions of up to 15%. Interestingly, drivers - gig workers will remain unscathed.
- DiDi has already pared investments in once red-hot businesses like community grocery buying.
- Some units like Didi Finance, which expands outside China, and its autonomous driving business will be less impacted.
- Shares of Didi have dropped nearly 70% from its offering price.
- DiDi suffered a $4.7 billion loss after revenues shrank in the September quarter following the regulatory assault.
- The market has priced in a possible penalty of 10 billion yuan ($1.6 billion) stemming from the government's probe into Didi, Bernstein said, adding that "the regulatory storm is largely over."
- Bernstein said Didi would likely invest in marketing shortly after resuming new customer acquisition.
- China looks to tighten rules for drivers and vehicles taking to the streets for the first time.
- Price Action: DIDI shares traded higher by 3.27% at $4.42 in the premarket on the last check Tuesday.
