Beijing (PingWest)—Chinese EV startup Byton will conduct layoffs in the US office before June 30, Chinese tech news outlet 36Kr reported.
Daniel Kirchert, CEO and co-founder of Byton, sent an email to all employees in the US office, saying that the company's ability to obtain financing from existing and new investors have been severely impacted by the current economic climate.
"I must confirm that we are reducing the US employee headcount...We will pay out previously deferred salaries to all US employees on or before June 30, 2020," said Daniel Kirchert.
A core team consists of employees who responsible for IP and operational in R&D, as well as supporting functions, are retained.
A core team of employees responsible for IP, operational in R&D, and supporting functions is retained.
"Our global program continuity will be secured based on the revised collaboration model between our silicon valley, Nanjing, and Munich offices," said the CEO.
Currently, Byton owes Chinese employees about 100 million yuan, or four months' salary, 36Kr reported, citing people familiar with the matter.
Following lay-offs in China last year and planned pay cuts, the startup furlough more than 200 workers at its North American headquarters in California in April due to the coronavirus pandemic, and the launch of its first vehicle M-Byte has been re-evaluated.
Byton's continuously cost-cutting measures reflect that the coronavirus pandemic has hit the global automotive industry tremendously, especially in sales and supply chain. According to data released by the China Association of Automobile Manufacturers. Car sales in China fell for the 21st consecutive month in March. First-quarter sales totalled 3.7 million vehicles, down 42% from a year ago.