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Faraday Future is almost run out of money as a result of an argument with its main investor, its founder has resigned and the company is taking even more drastic measures to prevent the company from collapsing as long as new investments will not be delivered. The edge has learned. Last week's layoffs and pay cuts did not cut the monthly payroll by nearly $ 10 million. Management has decided to close some operations this week at the company's headquarters in Gardena, California, and at its Hanford, Calif. Plant. Workers will be on leave without pay or "stay" until new funds are obtained, according to an email from CEO Jia Yueting obtained by The edge.
In addition, Nick Sampson, one of the three co-founders of Faraday Future, resigned Tuesday, according to a separate email obtained by The edge. His departure comes just a day after Peter Savagian, GM's long-time CEO and Faraday Future's senior vice president of technology and product development, also left the company. And this follows the announcement of layoffs and wage cuts last week, following a dispute with the main funder Faraday Future, the Chinese real estate giant Evergrande.
"The company is effectively insolvent in both financial resources and personnel, it will be at best [sic] drinks along for the foreseeable future. I think my role in Faraday Future is not long [sic] a path that I can follow, so I will leave the company, starting now, "wrote Sampson. "I can not continue to know the devastator [sic] the impact we have on the lives of our employees, their families and loved ones, as we [sic] This will impact the lives of our suppliers and the industry as a whole. "
Sampson added that "if circumstances changed significantly, I would definitely consider going back to society."
The CEO of Faraday Future (and the only remaining founder), Jia, indicates in his email that all employees who started working after May 1 of this year "must take a leave. Full-time employees who work for Faraday Future before May 1 will have the opportunity to stay on a reduced salary of $ 50,000 a year, according to current and former employees. Hourly workers who work in the company for more than six months will be allowed to stay, but at the minimum wage, say current staff and employees. Jia said the stay will last at least until December and depend on the search for new funding.
"We are grateful to the hundreds of employees who wish to stay with the minimum wage. [sic] and continue working on the main project FF91, "wrote Jia. "It was an extremely difficult decision to make, and we recognize the emotional and financial stress that results for people's personal lives."
Leave, however, will "essentially shut down society," Sampson wrote. "I tried my best to find solutions to the problems, but I encountered insurmountable obstacles that I did not manage to solve." I'm sorry and sad that this day is over, but I have to do what my heart tells me. "
The discord between Faraday Future and Evergrande Group resulted in layoffs and wage cuts – by 20% – last week, as well as blocked payments to a number of suppliers. In July, Evergrande had already disbursed the first $ 800 million spent by Evergrande and had been denied an advance on the remaining $ 1.2 billion after bringing the case to an arbitration tribunal in Hong Kong . The arbitrator has authorized Faraday Future to solicit a new investment of $ 500 million, but it is subject to the approval of Evergrande. In Tuesday's email, Jia said Faraday Future is "currently engaged in conversations with investors from different backgrounds".
Faraday Future signed a lease for the Hanford plant in August 2017 and promised the local government to create about 1,300 jobs. The company has spent most of 2018 renovating the plant – which had been inactive since 2001, when it was used to make Pirelli tires – to prepare it for the production of its luxury electric SUV, the FF91. He bought the Gardena headquarters in 2014 and has been occupying it ever since.
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