The reason for such large-scale layoffs is that the whole business has declined and related businesses have stopped, so there is no need for many people. In such a difficult time, we have to downsize to survive.

First of all, for Didi Chuxing, because he was punished by the relevant departments some time ago, his whole business has also been affected to some extent, especially in the process of his review some time ago, he could not get new users, so for the online car platform, such a blow is undoubtedly very serious. More importantly, for the current domestic online car market, there is still no oligopoly. The whole competition is still fierce. There are hundreds of enterprises, large and small, on the entire online car sharing platform. In this context, if you can't defend your market share, you will be defeated by other online car sharing platforms in the fierce competition, and even your original market share will be seized by other platforms or companies.

Moreover, for Didi Chuxing, its business volume has also declined to some extent during this period. Due to the outbreak of epidemic in COVID-19 for many times in China, there has also been a certain degree of epidemic rebound in various provinces, so these transportation industries will be affected to a certain extent, especially in cities with epidemics, and the online car rental market will definitely not operate normally. In this context, for Didi Chuxing, he has no good way to face such a situation, because the whole world is entangled in the core relationship, and for these online car platforms, they have no good way to deal with this matter.

And at present, he must scale down to survive in such a difficult environment, otherwise he will continue to expand. For Didi Chuxing, he will not have enough cash flow to support its unlimited expansion.