Nov 23, 2022 07:19 PM

Chinese EV Startup Cuts Salaries Amid Ballooning Losses, Sources Say

A WM Motor store in Beijing on Oct.1. Photo: VCG
A WM Motor store in Beijing on Oct.1. Photo: VCG

WM Motor Holdings Ltd. is cutting salaries by half for management and nearly a third for staff members, Caixin has learned, as the electric-vehicle (EV) startup struggles with sluggish sales and ballooning losses.

The Shanghai-based automaker began the cost-control measures in October, also cancelling annual bonuses and vehicle purchases subsidies, the source said, citing a Monday internal memo.

The company — which is planning a Hong Kong IPO after reportedly aborting plans to go public on Shanghai’s high-tech Star board — has postponed its salary pay date to the 25th day of the month from the eighth, giving it more leeway to improve cash flow, the source said.

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