Alibaba's Peer Meituan Eyes Downsizing Workforce, Restructuring Ride Hailing Business
Author: Anusuya Lahiri | March 06, 2023 09:57am
- China's Meituan (OTC:MPNGY) (OTC:MPNGY) plans to restructure its ride-hailing service and reduce the number of staff working on the platform, according to CEO Wang Xing's internal letter.
- The Alibaba Group Holding Limited (NYSE:BABA) rival aims to reduce resources dedicated to the service and transfer a portion of the service's staff to other business lines, Reuters reports.
- Meituan's main app offers services from food delivery to restaurant bookings.
- Meituan relaunched as a standalone app in 2021 after regulators barred the Chinese market's dominant player DiDi Global Inc (OTC:DIDIY), from registering new users.
- Meituan's decision also comes as many of its tech peers evaluate non-core businesses and cut costs as the economy slows.
- Alibaba slashed its workforce by about 19,000 employees in 2022 for cost efficiency. Alibaba, let go of over 4,000 workers in the year's final quarter.
- Price Action: Meituan shares traded higher by 0.94% at $18.31 premarket on the last check Monday.
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