China’s EV maker Faraday Future plans lay-offs, 20 percent pay cuts —Reuters
What happened: Electric vehicle startup Faraday Future headed by Jia Yueting, former boss of troubled LeEco, has announced a 20 percent salary cut for all staff and an unspecified number layoffs. The news comes briefly after reports that 60 Chinese employees of FF did not receive their salary on time. The reason behind the delay was contract revisions from FF’s main investor Evergrande.
Why it’s important: FF is currently seeking arbitration to terminate a deal to sell a 45 percent stake to China’s Evergrande Health Industry Group. FF is claiming that the Evergrande is deliberately holding funding and is set on grabbing intellectual property from the company. Faraday Future added in its announcement that it was looking for new investors. Local reports have suggested that besides deteriorating work conditions, equity rights may have been another point of dispute between Evergrande and FF employees in China.