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 said Monday.

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.

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.

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 US$1.5 billion from the SoftBank-led Vision Fund in February.

(SD-Agencies)