Cash-strapped electric car maker Faraday Future to cut pay, lay off staff in dispute with China Evergrande unit

Struggling California-based electric carmaker Faraday Future said on Monday it would implement a 20 per cent salary cut across the board and start laying off staff, as a dispute with largest shareholder Evergrande Health Industry Group over withheld investment rumbles on.

The company said all employees would see their annual base pay cut by 20 per cent with immediate effect, and that it would start laying off staff members to shore up finances. It did not say how many people would be laid off.

Faraday Future accuses Evergrande of deliberately holding back funding to gain control of electric car start-up

“The founder and global CEO Jia Yueting has reduced his annual salary down to US$1 from October 16,” the company said. “Members of senior management have volunteered to take a further reduced salary, beyond the 20 per cent.”

Faraday, which was founded in Los Angeles in 2014 by Chinese entrepreneur Jia Yueting, said the measures were temporary, and that it was hopeful all staff benefits would be restored after the company had successfully completed a new round of funding.

It blamed Evergrande Health, a unit of Chinese real estate giant China Evergrande Group, for its financial struggles and said it had “no other way” but to take such measures.

The development is the latest in the dispute between Faraday and Evergrande Health. It started this month, four months after the two companies teamed up with the aim of bringing Faraday’s high-end electric cars to the market.