Alibaba's Peer Meituan Eyes Downsizing Workforce, Restructuring Ride Hailing Business

• 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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