What’s The News?The once high-flying Chinese bike rental giant Ofo Inc. is now fighting a losing battle for survival. Putting the final nail in the coffin the company has now laid off its operations team in Singapore. Click To Tweet
What Does This Mean?
The move by Ofo Inc. comes just days before the Chinese New Year holidays. At the start of this week, at least nine or 10 employees were told personally over a phone stating that Thursday (January 31) would be their last day at work.
Requesting anonymity an employee said, “For the past two months, the news is all very negative. I’m also looking for another job. It’s time to just leave, no point holding on. I don’t see any progression… Even if I don’t agree to it, I don’t know whether there is anything for us to do or if we will be paid in February,” he added.
Additionally, they were not given any clarification on their termination from the service and were also denied the one-month compensation as agreed upon in their employment contract.
What’s more troubling is that this course of action comes at a time when Ofo owes its creditors a sum of more than S$700,000, as per the report by Today.
Why Does It Matter?
The Bigger Market Picture: The speculations of massive layoffs at Ofo have been making rounds since last year. The company has been under fire from failed global expansions, including the cash crunch.
According to Today, the employees are owed thousands of dollars in unpaid transport and mobile phone bills by the company which has been pending for the past six months.
Another revelation comes from the Land Transport Authority (LTA) responding to the queries that it has not received any notice from Ofo regarding the surrender of its license.
The LTA has also given an ultimatum to Ofo to reduce its bicycle fleet and meet all regulatory requirements including QR-code parking system by February 13, or its license could be suspended.
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