Faraday Future, a Chinese electric vehicle maker ambitious to leapfrog Tesla Inc., revealed plans to lay off employees and cut staff salaries by 20 percent due to "financial difficulty" in a statement on October 23.
Following a row with its property-tycoon backer Evergrande, the electric-vehicle startup said the measures are temporary and compensation will be restored once new funding is secured. As for its founder Jia Yueting, the erstwhile billionaire will now take an annual salary of USD 1 starting October 16.
The announcement occurred days after the fallout of Faraday and its new backer, China’s third-richest man Hui Ka Yan, came to light. Evergrande Health Industry Group Ltd., a unit of Hui’s real estate empire, said earlier this month it has engaged lawyers to defend the company’s interests after Jia began arbitration in Hong Kong.