Written by Akimoto Yukiko | Edited by Cláudio Afonso
Earlier this month, a social media post alleged that JiDu Auto, a joint venture between Geely and Baidu, was undergoing significant layoffs, with a reduction of nearly 40% of its workforce.
The post also claimed that the company’s CFO had resigned, the CEO’s family had relocated to Singapore, and the COO had joined another company. JiDu Auto has since refuted these rumors, stating that they are baseless.
In an official statement on its Weibo account, JiDu’s legal department said that the rumors have negatively impacted the company’s operations and confirmed plans to take legal action against those spreading false information.
This Wednesday, the company’s CEO Xia Yiping issued an internal letter acknowledging that the company is undergoing a critical phase of adjustment. The chief executive announced the company’s transition into what he called the “Startup 2.0” phase and named four key focus areas for the company moving forward:
1. Sustained investment in core technology to maintain a competitive edge;
2. Enhancing sales and service capabilities to better compete in a challenging market;
3. Optimizing organizational structure by merging overlapping functions and improving inefficient processes;
4. Cutting low-yield projects to focus on initiatives that can deliver financial performance in the short term.
In the letter, Xia emphasized that management has already defined the next stage’s objectives, execution plans, and resource requirements, with full understanding and support from shareholders.
“We will spare no effort to enhance operational efficiency and adapt to the new demands of the ‘Startup 2.0’ phase,” he wrote, confirming that layoffs would be part of the company’s restructuring efforts.
Xia also addressed employees via a video meeting, candidly discussing the difficulties the company is facing. He reassured employees that the management team is fully committed to supporting the necessary adjustments and working alongside employees to overcome these challenges. He described the current measures as a way to streamline operations, strengthen core competencies, and lay a solid foundation for long-term growth in an increasingly competitive market.
The company delivered 2,485 vehicles in November, bringing its year-to-date deliveries to over 14,000 units. The result represents a 20.02% decline compared to October’s delivery volume of 3,107 units.
Written by Akimoto Yukiko | Edited by Cláudio Afonso
