Chinese ride-sharing company Didi Global has reportedly laid off 20% of its employees, as regulatory pressure continues to weigh heavily on the company’s once-thriving business.

The dismissal is said to have already started in mid-January and will end before the end of this month, Chinese media outlet LatePost reported on Monday. According to LatePost, this will affect major business units such as logistics and ridesharing in China, but will not be extended to Didi’s overseas operations. The Beijing-based company employed nearly 15,000 people in its domestic markets as of December 31, 2020, according to its prospectus, and a 20% layoff would result in the loss of 3,000 people.

A spokesperson for Didi declined to comment. Since launching a cybersecurity probe into the company shortly after its $4.4 billion IPO in New York last June, Chinese regulators have maintained a heavy-handed approach to the industry. carpooling in the country. On Monday, regulators again pledged to step up oversight. Platform companies could have their apps blocked or ordered to suspend operations if they violate rules regarding users’ personal information, drivers’ labor rights, as well as internet and data security, a reported the Global Times.

Didi, for its part, has already pulled its 25 apps from Chinese app stores over issues related to the collection and use of customer data, and those apps remain inaccessible to new users to this day. Its shares have fallen 70% in the past year, wiping out tens of billions of dollars in market value. In the September 2021 quarter, the company posted huge losses of $4.7 billion, while revenue fell 13% to $6.6 billion from the previous quarter and 1.6% compared to the same period a year ago.

Led by 39-year-old billionaire Will Wei Cheng, the company also announced plans to delist in New York and convert its US depositary shares into freely tradeable shares in Hong Kong. He could enroll as early as the second quarter of this year, according to a South China Morning Post report citing unnamed sources. The company is trying to meet all registration requirements in the Asian financial hub, including licensing its drivers, the newspaper reported.