Shulou(Shulou.com)11/24 Report--

Beijing, Oct. 26 (Xinhua) Electric car startup Faraday will cut the salaries of all its employees by 25% from next month to conserve cash. Currently, the company is looking for new funding for the launch of its first electric car, the FF91.

Faraday FF91 electric car

Faraday announced the across-the-board pay cut in an email sent to employees last week, which is expected to last from November 1 to the end of the year. Faraday laid off dozens of employees in the future earlier this month, according to two people familiar with the matter.

Faraday said in an email in the future that employees would be awarded restricted stock units (RSU), an amount equivalent to the cut in wages, which would be assigned in December. Faraday will also offer employees a bigger pay cut in exchange for a more valuable RSU in the future. However, the company points out that if an employee is fired, any RSU granted will be confiscated.

For now, Faraday's future cash reserves are shrinking rapidly. The company recently reported that it had $39 million in cash as of September 21, down from about $47 million at the end of August.

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