Jiyue in Liquidity Crisis: CEO Surrounded by Employees Over Unpaid Wages
Jiyue CEO Surrounded by Employees Amid Liquidity Crisis, Seeks Baidu’s Help
Shanghai, China – Jiyue, the electric vehicle joint venture between Geely Holdings and tech giant Baidu, is facing a severe liquidity crisis, leaving employees unpaid and demanding answers. CEO Xia Yiping was confronted by employees in his Shanghai office on Thursday,December 12th,as tensions escalated over unpaid wages and social security contributions.
The crisis comes after reports of large-scale layoffs and the resignation of senior executives at jiyue. Earlier this week, Xia Yiping admitted in an internal letter that the company was “encountering difficulties” and required immediate restructuring, including merging departments and cutting projects.
Employees,though,are demanding more immediate action. Videos circulating online show Xia Yiping surrounded by a group of employees, some threatening to withhold their passports and ID cards until their wages are paid.
“The company’s account has been frozen,” Xia Yiping told the employees, emphasizing that he was not solely responsible for the situation. He promised to address the social security issues of Beijing employees by Friday morning and those of Shanghai employees by December 27th, pending discussions with the board of directors.
Xia Yiping also stated that shareholders were willing to compensate employees who choose to resign, but specific plans needed further negotiation. He assured employees that the company was actively seeking financing and had not shut down, promising that vehicle warranties and software services would remain uninterrupted.Later on Thursday, Jiyue held a meeting with Baidu executives to negotiate solutions for employee compensation and social security payments. While Jiyue’s senior management has reportedly been in contact with Baidu regarding these issues, a source familiar with the situation claims that Baidu’s senior management has been unresponsive.
The situation highlights the intense competition in China’s electric vehicle market and the challenges faced by new entrants. Jiyue’s future remains uncertain as the company navigates this financial crisis and seeks a resolution with its shareholders and employees.
Jiyue CEO Faces Employee Backlash Amidst Liquidity Crisis
Shanghai, China: Jiyue, the electric vehicle joint venture between Geely Holdings and tech giant Baidu, is embroiled in a severe liquidity crisis, leaving employees desperate and demanding answers. CEO Xia Yiping was confronted by a group of angry employees at Jiyue’s Shanghai headquarters on December 12th, as tensions flared over unpaid wages and social security contributions.
This confrontation comes on the heels of reports of widespread layoffs and several high-level executive resignations at Jiyue. In a recent internal letter, Xia Yiping acknowledged the company’s struggles and announced the urgent need for restructuring, including department mergers and project cancellations.
Videos circulating online depict Xia Yiping surrounded by agitated employees, some threatening to withhold their passports and ID cards until they receive their due wages.
Addressing the crowd, Xia Yiping stated that the company’s accounts had been frozen and stressed that he was not solely responsible for the predicament. He promised to resolve the social security issues faced by Beijing employees by Friday morning and those of Shanghai employees by December 27th, pending board approval. He also indicated that shareholders were willing to compensate resigning employees, with specific details to be finalized through further negotiations.
Reassuring the employees, Xia Yiping emphasized that Jiyue had not shut down and was actively pursuing financing options. He guaranteed the continuation of vehicle warranties and software services.
Later on Thursday, Jiyue held a meeting with Baidu executives to discuss solutions for employee compensation and social security payments. While Jiyue’s senior management has reportedly been in contact with Baidu regarding these issues, a source claims that Baidu’s senior management has remained unresponsive.
This situation underscores the fierce competition within China’s electric vehicle market and the hurdles faced by new players. Jiyue’s future remains uncertain as the company battles this financial crisis and seeks solutions alongside its shareholders and employees.