Chinese electric vehicle startup company Byton has been forced to furlough hundreds of its employees in the US amid the ongoing the coronavirus pandemic that is devastating the country's economy. The layoffs follows a series of similar moves made by the company last year, increasing investor's doubts on Byton's ability to deliver on its promises.
The cost-cutting measures and ongoing disruptions to its operations have greatly threatened Byton's plans to release its first commercially available EV, called the M-Byte. The company had stated that the cost-reduction efforts in its US operations were necessary to bolsters its main operations in Nanjing, China. The manufacturing facility in the capital of China's eastern coastal Jiangsu province is where the M-Byte fully-electric sports utility vehicle is being produced.
A report published on Tuesday revealed that Byton had furloughed more than 200 workers at its North American headquarters in Santa Clara, California. The research and development facility is mainly focused on automotive software design and has around 450 permanent staff members.
Byton confirmed the reports on Thursday, while also revealing that it has rolled out a pro-rata salary deferral system based on seniority for its employees in China. According to the company, the measures are meant to alleviate financial pressure on its operations given the dire circumstances.
A company representative had confirmed that Byton is working on "specific arrangements" in order to place its production schedule back on track after months of being shut down. Meanwhile, the launch of the M-Byte for the Chinese market has apparently been put on hold until further evaluation. The representative added that Byton has no plans to cut its staff in China and that its facility in Nanjing is running at 95 percent of normal activity since it had reopened back in February.
Byton was expected to release its first electric vehicle in China later this year with plans to release the model in the US and Europe by the second half of 2021. The company's fate will heavily rely on the success of the M-Byte's debut in China and the other markets. Byton's founder and chief executive officer, Daniel Kirchert, previously stated that there was "enormous interest" for the particular model in Europe. He noted that out of the 65,000 reservations for the vehicle, over 25,000 had come from customers in Europe.
The M-Byte electric SUV is positioned as the company's entry into the premium electric SUV segment with an entry price of around $48,793. The vehicle features a futuristic interior with a 48-inch high-resolution display and front-rotating seats.
