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Chinese Automaker SAIC Eyeing Layoffs At Joint Ventures With GM, Volkswagen: Report
Chinese carmaker SAIC Motor is reportedly looking to cut jobs in the thousands at its joint ventures with foreign automakers General Motors (NYSE:GM) and Volkswagen (OTCPK: VWAGY).
What Happened: SAIC, which is owned by the Chinese state, is looking to cut 30% of employees at its joint venture with GM, 10% of employees at its JV with Volkswagen, and more than half its employees at its Rising Auto EV brand, reported Reuters, citing two sources familiar with the matter. The layoffs are expected this year and will mostly be executed through the implementation of stricter performance standards and payout to employees who received lower performance ratings, the report added.
While the layoffs at SAIC-VW are expected to impact white-collar professionals over factory workers, it is not known whether factory workers will be included in the layoffs at SAIC-GM. At Rising Auto, the company will offer payouts to low-rated employees, while also dismissing some workers and not renewing the contracts of a few others, Reuters said.
The report noted that large-scale workforce reductions are rare at state-owned Chinese firms. However, competition is intensifying in the Chinese EV market with players like BYD Co Ltd and Tesla Inc taking the lion’s share.