BEIJING—China’s online used car trading platform Renrenche aims to cut as much as 60 percent of staff as it battles tight funding and fierce competition, a source familiar with the matter told Reuters on June 24.
The move comes amid a slowdown in China’s tech sector that has led to caution among venture capitalists, underperforming IPOs and staff layoffs by companies such as JD.com.
Renrenche, a startup backed by Tencent, Didi Chuxing and Goldman Sachs, is struggling to expand its business portfolio, said the source, who sought anonymity in the absence of authorization to speak to the media.
The source, who was briefed on the situation, also confirmed the authenticity of an internal e-mail signed by Renrenche’s founder, Li Jian, and circulated on Chinese social media last week, saying the company expected the restructuring would boost efficiency and speed decision-making.
Renrenche did not immediately respond to an email from Reuters on Monday to seek comment. It was not immediately clear how many workers the company has.
Used car sales in China have also declined amid a contraction in overall car sales, which dropped 3.29 percent in May, says key industry body China Automobile Dealers Association (CADA).
However, Chehaoduo, the parent company of Renrenche’s main domestic competitor, Guazi.com, raised $1.5 billion from the SoftBank-led Vision Fund in February.
By Yilei Sun & Brenda Goh
This content is courtesy of, and owned and copyrighted by, https://www.theepochtimes.com and its author. This content is made available by use of the public RSS feed offered by the host site and is used for educational purposes only. If you are the author or represent the host site and would like this content removed now and in the future, please contact the USSANews.com administrator by using the contact form located in the top-left menu. Your request will be immediately honored. Please visit https://www.theepochtimes.com for more terrific, conservative content. The owner of this website may be paid to recommend American Bullion. The content of this website, including the positive review of American Bullion, the negative review of its competitors, and any other information may not be independent or neutral.