Saturday, 2023 September 23

Firing thousands, Didi is said to be doling out sweeter-than-expected compensation deals

Didi, China’s largest ride-hailing company is about to lay off thousands of employees but is apparently determined not to end things on a bitter note.

Employees are said to be “competing” to be fired as the company has offered a “goodbye” bonus that is better than expected, China News Service reported, citing sources on Chinese career networking platform Maimai, which has verified the sources as Didi employees.

According to those sources, Didi has promised those fired to keep their employment contracts effective until the end of March so that they have enough time to land a new job, and is offering them N+1 salaries (N representing the years of one’s service) and compensating their remaining paid annual leaves with double salaries.

If they are willing to accept the termination agreement within one week, they are offered N+2 salaries.

Chinese law requires a one-month in-advance notice and N+1 salaries as layoff compensation.

Some commentators on China’s social media platform Sina Weibo praised Didi for being “well behaved” as it was transparent about its downsizing plan and seems to be compensating those laid off in the right way, unlike some companies that have disguised their laid-off plans in various forms to dodge compensation.

Didi CEO Cheng Wei announced a plan to lay off 15% of its staff earlier this month as the company, which reportedly racked up US$1.6 billion in losses last year, needs to prepare for winter.

Didi spokesperson replied a “no comment” when contacted by KrAsia. 

Jingli Song
Jingli Song
I believe Chinese innovation at various level needs to be known by the world.

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