(Yicai Global) June 4 -- Chinese bike sharing firm Baike Luoke Technology which operates a popular Ofo platform, has embarked on large-scale layoffs due to cash flow issues just less than three months after the firm raised USD866 million in a round of financing in March, insider sources told tech news portal Huxiu. Ofo has insisted that the rumor is unfounded.

The sackings involve all the departments of the Beijing-based Ofo, some current employees at the firm added. Co-founder and Chief Operating Officer Zhang Yanqi, Senior Vice President Nan Nan and Director Yang Xun have all left the office and the overseas business division has been dismissed. The layoff ratio has increased to 60 percent from an earlier 47 percent, which means the supply chain team will retain only 32 members.

Ofo, founded in 2014, has accumulated almost 200 million domestic users and operates in 20 overseas countries including the US, UK, France, and Singapore. With the latest financing round, internet giant Alibaba overtook ride-hailing firm Didi Chuxing as the firm's major shareholder. This helped to stave off the rumors about Ofo's inevitable merge with the world's biggest bike sharer and local rival Mobike.

Editor: Emmi Laine