Didi Chuxing, China's dominant ride-hailing company, is axing 15% of its Chinese staff as it readies to take on Uber in Chile and Peru.
Didi announced around 2,000 employees will be let go as it seeks to refocus the company around the core ride-sharing business.
It follows media reports claiming Didi lost $1.6bn in 2018 and spent $1.67bn on subsidies for drivers. The reports also claimed the company had not been profitable for six years.
The ride-hailing company also announced plans to recruit 2,500 employees to increase its expertise in safety technology, products and driver management.
The changes are part of a shift in focus towards safety and compliance in the wake of increased regulation following a number of high-profile attacks of passengers, including two murders.
Didi said it will also focus on recruiting staff to boost its capabilities and skills for globalisation as the company continues to expand internationally.
Didi has begun recruiting staff as it prepares to launch operations in Chile and Peru. It follows the company’s launch in Brazil and Mexico last year.
The move will see the Chinese company once again go head to head with Uber in a battle to be the dominant ride-hailing service.
In 2016, Didi bought Uber’s Chinese operations in a show of strength and domination over its US rival.