Jiyue, the Chinese electric vehicle (EV) maker jointly founded by Baidu and Geely, is implementing a restructuring plan that includes layoffs. The company, which previously operated under the name jidu Auto, has confirmed it will provide employees with a legally compliant severance package, according to a December 19th declaration. This news follows reports of financial difficulties and internal clashes.
The severance package, described as “N+1,” is a common practice in China. “N” represents the employee’s tenure with the company, calculated up to December 20, 2024, while “+1” signifies one additional month’s salary, including allowances. The package also includes the conversion of unused vacation time.
According to the official statement, “Wages, social security, and provident fund: Wages will be settled until December 20, 2024. the company will pay everyone’s social insurance and provident funds until December 2024 and complete the payment before the processing time required by the human resources and social security department.”
further details clarify, “Special arrangements: In principle, for employees who are in the ‘three periods’ (pregnancy, childbirth, lactation), work-related injuries, or medical treatment, we will retain their jobs until the end of the corresponding situation.”
The method of payment is also outlined: “Method and time of performance: Under the guidance and witness of relevant government departments, a regulatory joint account will be established to pay wages and economic compensation on behalf of Jidu Company before January 20, 2025. Advance funds were provided by Baidu and Geely.”
While the exact number of affected employees remains undisclosed, the move underscores the challenges facing the burgeoning Chinese EV market. The situation mirrors similar workforce reductions seen in the U.S. auto industry during periods of economic uncertainty.
importantly, Jiyue assures current customers that key services will continue uninterrupted. “Jiyue’s ASD and map navigation will be covered by Baidu and will not stop services,” the company stated.Existing vehicle owners can access support through Lynk & Co’s after-sales service network.
This development highlights the competitive landscape of the global EV market and the financial pressures faced by even companies backed by major players like Baidu and Geely. The situation serves as a reminder of the inherent risks in the rapidly evolving automotive sector.
Jiyue Auto Layoffs: Expert Analysis
Senior Editor: Welcome back to World Today News.Today, we’re diving into teh recent news about Jiyue Auto, the Chinese EV manufacturer backed by tech giant Baidu and Geely Holding Group, announcing layoffs amid restructuring. Joining me to unpack this development is automotive industry analyst, Dr. Lin Mei. Lin,thanks for being here.
Dr. Lin Mei: My pleasure. It’s critically important to understand the complexities of this situation.
Senior Editor: Absolutely. The news has sparked concerns given the involvement of major players like Baidu and Geely. Can you shed light on what might be driving thes layoffs?
Dr. Lin Mei: While Jiyue hasn’t explicitly stated the specific reasons, the Chinese EV market is incredibly competitive. Startups are vying for market share against established giants, and global players are entering the arena. Jiyue, even with its strong backing, might potentially be facing pressure to streamline operations and cut costs to remain competitive. It’s not uncommon for companies to restructure during such periods of market turbulence.
Senior Editor: The article mentions a “N+1” severance package. Can you explain what that entails for the affected employees?
Dr. Lin Mei: “N+1” is a standard practice in China. “N” represents the employee’s years of service, and “+1” adds another month’s salary, along with allowances. They’ll also convert unused vacation time into pay. This structure aims to provide a cushion during the job transition. It’s important to note that Jiyue has also outlined provisions for employees in specific situations like pregnancy or medical leave, which is commendable.
Senior Editor: This news may raise concerns for customers. What assurances is Jiyue providing to its existing car owners?
Dr. lin Mei: jiyue has emphasized that key services like ASD and map navigation,powered by Baidu,will continue uninterrupted. They’ve also partnered with Lynk & Co’s service network to support existing vehicle owners. This points towards a commitment to maintaining customer satisfaction despite the internal restructuring.
Senior Editor: what lessons can we take away from this situation regarding the broader EV market? Dr. Lin Mei: The jiyue case highlights the volatility and fierce competition within the EV sector. Even companies with strong backing face pressures to adapt quickly. It underscores the importance of financial stability, strategic planning, and innovation to thrive in this rapidly evolving market.
Dr. Lin Mei: ** My pleasure. It’s an critically important story to follow as the EV landscape continues to unfold.
