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Benzinga
Benzinga
Business
Anusuya Lahiri

DiDi To Slash 20% Workforce Ahead Of Hong Kong Listing: Report

  • 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.
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