Faraday Future reduces workforce and cuts remaining salaries

Electric car start-up Faraday Future has reduced staff numbers and cut the salaries of those still employed amidst a row with a major investor.

Information obtained by The Verge suggested the American firm would sack a number of workers while reducing salaries by 20 per cent for the rest of its workforce — which the firm has since confirmed.

It also revealed that company founder and chief executive Jia Yueting would take a symbolic $1 annual salary, while other members of the management team volunteered to take pay cuts of more than 20 per cent.

In a statement to technology website Engadget, a spokesperson for Faraday Future said: “Effective immediately, all FF salaried employees will receive an immediate 20 per cent cut to their annual base salary, and effective next week, all hourly employees will receive a 20 per cent cut to their hourly wages.

“The company is committed to monitoring its finances and will re-evaluate this decision with the goal of restoring salaries once funding is available. As an additional measure, we are reducing our headcount. We recognize that those who are now leaving have contributed tremendously to FF, and we appreciate their contributions.”

The cuts come following a public row with investor Evergrande Health Industry Group, which had committed to providing $2bn (circa. £1.54bn) to the firm in exchange for a 45 per cent stake in Faraday Future back in November 2017.

The Verge reports Yueting spent an $800 million of initial payments from Evergrande by the middle of 2018, and had requested another advance of $700 million — to which the Chinese firm said no. The report says Yueting has taken Evergrande to an arbitrator in Hong Kong — although the outcome of that is not yet clear.