FF cuts all employees’ salaries by 20% due to financial difficulties. Who will be the new buyer after Xu Jiayin?

On October 22, an internal email from FF showed that FF was facing financial difficulties because Evergrande Health did not fulfill its promise to pay the amount it agreed to pay. FF will reduce the salary of all employees by 20% and said it will have to take layoffs.

Starting this week, the annual salary of all employees will be reduced by 20%. At the same time, subject to compliance with the law, the hourly wages of hourly workers will also be reduced by 20%. The company promises to restore the original salary after the funds are in place.

On October 7, Evergrande Health released an announcement stating that Jia Yueting had basically used up Evergrande's $800 million and proposed to pay another $700 million in advance. After failing to achieve his goal, Jia Yueting filed for arbitration, demanding that Evergrande be deprived of the right to consent to financing and all cooperation agreements be terminated.

Evergrande refused to pay on the grounds that FF did not meet the contract terms. Jia Yueting filed an application for emergency relief and emergency arbitration proceedings at the Hong Kong International Arbitration Center, which takes an average of 14 days to issue a ruling. Currently, FF and Evergrande Health are waiting for the arbitration result of the Hong Kong International Arbitration Center.

Due to the conflict between the two parties, on October 15, more than 60 FF China employees who were transferred to Evergrande Faraday said that they had not received their wages from August 21 to September 20. More than 60 employees subsequently formed a group to demand wages and planned to conduct collective labor arbitration. It is understood that Evergrande Faraday has repaid the wages owed to more than 60 employees on the 19th.

Jia Yueting is looking for new investors who share the same vision as FF. The internal email also revealed that FF has started negotiations with new financing. However, FF must first resolve the dispute with Evergrande because Evergrande has the right to consent to financing. The entry of new financing will dilute Evergrande's equity.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.