Chinese start-up EV, Seres, stops launch in the US and fires 90 people in Silicon Valley

Seres, the Chinese start-up specializing in electric vehicles, formerly known as SF Motors, is laying off 90 people in its Silicon Valley office, the company said at a meeting of staff who will is held earlier today. The US launch of its first electric SUV, the SF5, is also suspended, according to a recording of the meeting obtained by The edge. It had originally planned to manufacture and sell its electric SUVs in China and the United States, with an exit scheduled for later this year.

About 300 people were working in Silicon Valley offices prior to the layoffs, according to a former employee who was granted anonymity because of a non-disclosure agreement with the company. The layoffs affect several areas of the business, including sales, marketing, IT, human resources, law, operations and design, said this person. A company spokesperson could not be contacted immediately for comment.

The layoffs come at a time when some of the most prominent Chinese and US startups are in trouble. Faraday Future has lost most of its workforce and has partnered with a restructuring company to generate new funds. NIO, a company that currently sells cars in China and is listed in the United States, recently delayed a new car and removed dozens of jobs in Silicon Valley and closed an office there after a few months of slow motion sales. He also had to call back thousands of vehicles because of a fire hazard.

Seres is a US brand owned by Chinese automaker Sokon, and its US arm will remain open despite layoffs, though it will become more independent and manage its own budget and goals. A letter from co-CEO James Taylor, read at the meeting, cited the recent slowdown in the Chinese economy, but especially the new car market, as one of the main reasons for the changes. The ongoing trade war with the United States has also been cited as a reason.

"At a time when Sokon is handling so many dynamic challenges, it's just too difficult in the short term to also try to launch a new brand and product type on another new market," reads Taylor's letter. . "As these strategic decisions are made, we must now make the appropriate adjustments to give society the best chance of short-term survival and long-term success."

Seres made waves as SF Motors when it acquired in 2017 a start-up founded by Martin Eberhard, co-founder and former CEO of Tesla, who has since left the company. It also made headlines by hiring Taylor, who had served as Cadillac Marketing Director and Hummer CEO.