Extreme Vietnam meets challenges: where is the way to lay off employees and pay back wages?
Recently, an open letter inside the ultra-Vietnamese car has aroused widespread concern. This letter was sent by Xia Yiping, CEO of Jiyue Automobile, in which he frankly stated that the company was facing unprecedented challenges, and announced that the company would enter the stage of entrepreneurship 2.0 and must take immediate measures to make adjustments.
Xia Yiping emphasized in the letter that the entire automobile industry is experiencing a storm of efficiency improvement. In order to cope with this change, the management of the company will go all out to tide over the difficulties with its employees. He pointed out that the company must do four things well in the new venture period: first, insist on long-term investment in core technologies to maintain a leading position; The second is to strengthen the construction of sales and service capabilities to cope with fierce market competition; The third is to merge departments and posts with overlapping functions and reform inefficient internal workflow; The fourth is to cut projects that cannot improve financial performance in the short term.
It is understood that Jiyue Automobile is a high-end smart car robot brand jointly built by Baidu and Geely Holding Group. It was officially released in August 2023, and the first model was also launched in October of the same year. However, despite being backed by two industry giants, the performance of Extreme Vietnam in the market is not satisfactory. Since the beginning of this year, both brand influence and sales have failed to enter the ranks of mainstream brands.
According to the data, in the first six months of 2024, the sales volume of Extreme Yue vehicles was 218, 147, 511, 362, 1,001 and 461 respectively, and the cumulative sales volume in half a year was less than 3,000. In contrast, the sales volume of the same brand in June reached 20,106 units, and the monthly sales volume was more than six times that of the half-year sales volume. Although the new car 07 went on the market in the second half of the year, the sales volume of Extreme Vietnam has improved, but there is still a big gap from the "10,000 clubs".
Facing the severe market situation, the internal adjustment of the ultra-Vietnam automobile is also quietly carried out. According to insiders, the adjustment measures mentioned by Xia Yiping in the open letter actually mean that the company will start to lay off employees and cut projects. In fact, as early as the beginning of December, there were rumors that the extreme Vietnam would start a large-scale layoff, with a ratio as high as 40%. Although the company’s legal department subsequently denied it, since the release of the open letter, many netizens said on social media that they had been abolished, most of them were front-line salespeople.
In addition to layoffs, Extreme Vietnam Auto was also exposed to the problem of arrears in supplier cooperation funds. According to the scientific and technological media "Tech Planet" report, Jiyue Automobile defaulted on the payment of 360,000 yuan to the communication supplier, which was overdue and refused to pay the reminder letter for many times. In response to this matter and the delivery of new cars, Jiyue released a situation statement in the evening, indicating that the delivery of new cars is normal, and all parties are coordinating to fully promote the delivery of new cars and arrange payment in an orderly manner.
With the fermentation of public opinion, the live broadcast room of Extreme Yue Automobile has also been affected. Some netizens found that the official live broadcast room of Extreme Vietnam did not start broadcasting today, while the live broadcast rooms of other stores were normally opened, but the anchors were worried by the repeated questions from netizens and could not introduce the products normally. Some anchors even started to apply for jobs online, expressing their worries about their future career development.
Extreme Yue Auto also plans to make large-scale adjustments to offline stores. According to a salesperson, the clock-in time of its store has expired on the 16th of this month, when the company will inform the whole country how many stores to stay and which region to stay. It is reported that the best situation is to leave 50 stores. Another salesperson in Beijing said that all the stores in Beijing may be removed.
According to public information, as of the end of November, there were 140 offline stores, covering more than 40 mainstream cities across the country. Earlier, Xia Yiping publicly stated that he planned to open more than 250 stores in 2024. However, in the face of the current market situation and internal adjustment, this plan seems to be difficult to achieve.