China's SAIC Motor aims to cut thousands of jobs this year at its joint ventures with General Motors and Volkswagen and at an electric-car unit, two people...
SHANGHAI - China's SAIC Motor aims to cut thousands of jobs this year at its joint ventures with General Motors and Volkswagen and at an electric-car unit, two people with knowledge of the matter told Reuters.
The staff reductions won't happen all at once in mass layoffs but are targeted for 2024, the sources said. A large portion will come through implementing stricter performance standards and offering payouts to lower-rated employees who resign, they said.A SAIC spokesperson said Reuters' "speculation" about staff downsizing is "not true" and that the company would not set targets for worker dismissals.
The VW spokesperson declined to comment on whether the company had changed its employee performance reviews but called them a “long-term mechanism” and said SAIC-VW provides counseling and resources aiming to ensure “every employee can be qualified for their job requirements.” FALLING SALES SAIC has been China’s biggest automaker for nearly two decades but saw its sales fall by 16% during the first two months of 2024 from a year earlier, according to an SAIC filing.
As the industry’s electrification accelerates, the Chinese government has urged state-owned entities to be more efficient and less dependent on foreign partners. But SAIC still relies on its VW and GM partnerships for a large proportion of its sales and profits.
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