Rumors on Chinese social media said HiPhi will lay off up to 20 percent of its workforce and up to 50 percent in some divisions.
(Image credit: CnEVPost)
Chinese premium electric vehicle (EV) maker Human Horizons' HiPhi brand is reportedly in the midst of massive layoffs, underscoring the dilemma faced by some of the smaller players in a highly competitive market.
HiPhi management began giving verbal notification of the layoffs to some executives in the middle of this month, involving each department in varying proportions, local media outlet Jiemian reported today, citing people familiar with the matter.
The layoffs have not yet attracted widespread attention within HiPhi, with some lower-level employees not yet aware of them, the report said.
Information that HiPhi would lay off employees began circulating on social media after the National Day holiday earlier this month.
On one social media platform, a user verified as a HiPhi employee claimed that the company would be laying off as much as 20 percent of its workforce and as much as 50 percent of its workforce in some departments, according to the report.
HiPhi denied the rumors and said the current situation is normal personnel turnover, according to Jiemian.
HiPhi was founded in 2017, targeting the premium EV market of RMB 500,000 ($68,400) to RMB 800,000.
It launched its first model, the HiPhi X, in October 2020, which began deliveries in May 2021 and is currently priced at a starting price of RMB 570,000.
In August 2022, HiPhi launched its second model, the HiPhi Z, which is currently priced at a starting price of RMB 510,000.
On July 15, HiPhi launched its least expensive model to date, the HiPhi Y, in an attempt to enter the mainstream premium EV market. The model starts at RMB 339,000 and deliveries began on July 29.
The HiPhi Y delivered 1,021 units in August and 1,556 units in September, well behind its main competitors.
The Nio (NYSE: NIO) ES6, which was launched on May 24, delivered 7,896 units in September alone, with the model starting at RMB 338,000 in price.
($1 = RMB 7.3117)
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