From NASDAQ: 2024-03-31 19:40:45

China’s SAIC Motor plans to cut thousands of jobs this year at joint ventures with General Motors and Volkswagen, as well as at an electric-car unit, to cope with a cut-throat automotive price war and the rise of electric vehicles in China.

The state-owned automaker aims to cut 30% of employees at SAIC-GM, 10% at SAIC Volkswagen, and more than half at its Rising Auto EV subsidiary. SAIC’s sales fell by 16% during the first two months of 2024.

The staff reductions are targeted for 2024 and will involve implementing stricter performance standards and offering payouts to low-performing employees who resign. SAIC recruited 2,000 employees in the first two months of 2024, focusing on software and new-energy vehicles.

SAIC Volkswagen disputes claims of layoffs, stating it does not plan to cut 10% of its workforce. Employee performance reviews and support are in place to maintain a qualified workforce. State-owned automakers face challenges from Tesla and BYD in the rapidly growing EV sector in China.

SAIC and its foreign partners have seen sales decline as Tesla and BYD have dominated the EV market in China. SAIC-GM and SAIC Volkswagen have struggled to keep up, leading to workforce reductions and restructuring efforts at state-owned Chinese firms. China’s government encourages efficiency and less dependency on foreign partnerships in the auto industry.



Read more at NASDAQ: EXCLUSIVE-China’s SAIC aims to slash jobs at GM, VW ventures and EV unit, sources say