"I was laid off, and the company said it was for transformation." Li Fan, an employee of Guangqi Honda's sales team, was not surprised to receive the layoff notice, given that the entire new energy vehicle industry has been experiencing a huge reshuffle recently. Guangqi Honda laid off 1,700 employees this time, accounting for about 14% of the total workforce, which shows the scale of the scale.
According to industry analysis, this marks that new energy vehicle companies have entered a stage of deep reshuffle, controlling costs and improving efficiency through layoffs. Guangqi Honda's layoffs began in May and are expected to last until August. Employees who leave the company will receive a compensation plan of "N+2+1.8", of which N+2 standard compensation and 1.8 is an additional subsidy.
The company said that the layoffs are to further integrate resources, transformation and upgrading. According to the analysis of industry insiders, this is mainly due to the decline of subsidies for new energy vehicles and the decline in sales due to increasingly fierce market competition.
In fact, a number of new energy vehicle companies have frequently reported layoffs recently. In the first quarter of this year, Ideal, Weilai, and Xpeng all carried out large-scale layoffs. The problem of overcapacity and inventory backlog is further highlighted. According to statistics, in the first half of this year, more than 20 new energy vehicle companies lost money, and industry reshuffle is inevitable.
In the face of this dilemma, new energy vehicle companies are also actively seeking to break through. Reduce labor costs and streamline management structure; Adjust product positioning, reduce costs and enhance competitiveness. At the same time, enterprises are also accelerating digital and intelligent transformation to improve management efficiency. Many auto executives have already cut their salaries by 50% and announced that bonuses will be suspended for 2024.
In the process, it also led to a large number of employees losing their jobs. Li Fan said that the current employment situation is relatively severe, and it is difficult to find suitable positions. Many car companies have also set up reemployment assistance platforms to provide services such as internal job recommendations. However, it is difficult for executive-level layoffs to re-employ, and some choose to start their own businesses.
The pain of shuffling is inevitable. This puts forward higher requirements for car companies, which need to develop rationally and avoid risks. At the same time, it also tests the responsibility and courage of entrepreneurs, and only by forging ahead can we open up a new situation. It is believed that Guangqi Honda and other car companies will turn the crisis into an opportunity and start a new round of reform and innovation.
In the process of improving quality and efficiency, a new pattern will eventually be formed. Let's wait and see that China's new economy will bring more new opportunities and hopes.
My opinion
Specifically, Guangqi Honda and other car companies need to pay attention to the following points:
To further rationally plan production capacity, we cannot blindly expand, and we must scientifically set output targets according to actual market demand. At the same time, it is necessary to control the inventory and prevent the excessive use of funds. We will continue to promote internal management reform and deepen digitalization and intelligence to improve decision-making and operational efficiency. It is also necessary to establish a flexible employment system and optimize the allocation of human resources.
Increase the research and development of new products and new technologies, and form an independent brand with core competitiveness. At the same time, it is necessary to launch differentiated products for different consumer groups and expand market coverage. Further expand the lower-tier market and innovate marketing methods to meet the needs of users in lower-tier cities. It is also necessary to strengthen the construction of after-sales service system and enhance user loyalty.
Optimize the existing incentive mechanism, establish a benefit distribution mechanism that can share the fruits of development, and fully mobilize the enthusiasm of employees. It is also necessary to increase the intensity of re-employment assistance for employees who have left their jobs. We firmly believe that Guangqi Honda will turn the crisis into an opportunity, turn the crisis into safety, and start anew. It will also work with other car companies to promote China's auto industry to a new peak in a new round of technological and economic development!
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