Faraday Future Lays Off Half of Their Employees Amid Financial Troubles
The Chinese-invested and US-based electric vehicle producer Faraday Future (FF) is said to have laid off more than half of their employees and cut salaries for the ones remaining, due to cash flow problems that arise from its dispute with its main investor Evergrande Health. The source of the news is an internal email from CEO Jia Yueting.
Based on the email, the company has to take interim coping measures to tackle the temporary financial problems. Most of the employees who joined FF after May 1st this year will have to take a furlough for the months of November and December.
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For those who joined earlier, they will stay to carry forward mass production of FF 91 with temporarily lowered salaries. About 500 people will remain in the company, mainly those from the engineering R&D, the production and the supply chain teams.
According to an insider, FF is trying to solve the money flow difficulties through multi-channel and multi-dimensional financing. They are confident that they will return to normal operation and restore the salary within two months.
It is reported by the Verge that FF has also decided to shut down some operations at the company’s headquarters in Gardena, California, and at its factory in Hanford, California. In addition, a founder has resigned, leaving Jia Yueting the only co-founder.
Earlier this month, Jia accused Evergrande of failing to make the payments it agreed to and applied for a ruling at Hong Kong Stock Exchange. Arbitrators ruled that Evergrande could no longer stop FF from seeking new investment. Jia said in an email that the company is “currently engaged in conversations with investors from different backgrounds.”