Image Source: Visual China

BEIJING, June 8 (TMTPOST) — Chinese mobility service provider Caocao Chuxing has denied reports of massive layoffs on Wednesday, Bkeconomy reported.

Caocao Chuxing clarified that the company is undergoing normal business adjustments and that it will allocate more resources to its cab-hailing service and continue to recruit professional talents.

A source who claimed to be a former employee of Caocao Chuxing told Bkeconomy that they received the layoff notice on Monday. “Senior staff account more of the layoff targets. Employees who have worked for the company for more years will enjoy the 2N+1 compensation package while normal employees have the N+2 compensation package,” the source said.

“You leave on the day that you get informed about the layoff. You need to delete your computer account immediately and you cannot make copies of your documents,” a former Caocao Chuxing employee told Bkeconomy. “The company has disabled messaging function of the company’s DingTalk chat groups and only keeps records of new employees entering the company. The company continues to lay off lots of people while recruiting new workers.”

Caocao Chuxing has been quite active in the capital market over the past year. In September 2021, Caocao Chuxing announced that it completed its Series B round financing at 3.8 billion yuan.

Established in 2015, Caocao Chuxing provides ride-hailing services in 62 cities across China, with more than 60 million registered users, more than 13.5 million monthly service users, and 3 million registered drivers. It offers new energy mobility service that creates zero emissions and zero pollution with the help of an electric vehicle.

Geely Technology Group is currently the largest shareholder of Caocao Chuxing with a 77.33% stake. The newly joined Zhejiang Geely Holding Group Co. is the second-largest shareholder, holding 15.42% of the company's shares and subscribed capital contribution of 66.721 million yuan (US$10.3 million).