This file photo taken on Dec. 8, 2019, shows a van operated by local ride-hailing service provider Tada in Seoul. (Yonhap)
SEOUL, June 16 (Korea Bizwire) – Value Creators & Company (VCNC), the operator of ride-hailing service Tada, has decided to reduce its company payroll by half through intensive restructuring, as the company has been unable to find a new growth engine since the “Anti-Tada” bill was passed by the National Assembly in 2020.
According to industry sources, VCNC informed its employees about the restructuring plan on Wednesday.
To achieve this reduction, the company will implement a voluntary retirement program for one week, aiming to decrease the current workforce of 80 to 90 employees by over 50 percent.
In the event that the number of applicants falls short of the target, the company will implement a recommended resignation program.
Viva Republica Inc., the company behind the popular South Korean financial app Toss, acquired a 60 percent stake in VCNC in 2021.
However, VCNC continues to face challenges due to difficulties in vehicle supply and distribution caused by the shortage of automotive chips.
In addition to the restructuring, Toss is actively pursuing a merger of Tada with another company.
Currently, the leading candidate for the merger is Swing, an electric scooter sharing service company.
Ashley Song (ashley@koreabizwire.com)
