BYD employees face temporary salary, benefit cuts to trim costs, report says
BYD Co. will reduce employee salaries and benefits by 14 percent for four consecutive months beginning in June, according to Chinese media.
The decision follows a steep decline in the company's profits as a result of weaker economic growth across China, reported Caijing, a Beijing-based magazine, citing a notice that BYD sent to its employees.
The temporary salary and benefit cuts will save up to 240 million yuan ($38 million). That is a big sum for BYD, whose net profit plunged more than 90 percent to 27 million yuan in the first quarter of this year, the magazine reported.
BYD sold 176,796 vehicles in the first five months of this year, down 12 percent from the same period last year, according to LMC Automotive.
The Shenzhen-based company, which is partly owned by U.S. billionaire Warren Buffett, also makes mobile phones and rechargeable batteries.
The decision follows a steep decline in the company's profits as a result of weaker economic growth across China, reported Caijing, a Beijing-based magazine, citing a notice that BYD sent to its employees.
The temporary salary and benefit cuts will save up to 240 million yuan ($38 million). That is a big sum for BYD, whose net profit plunged more than 90 percent to 27 million yuan in the first quarter of this year, the magazine reported.
BYD sold 176,796 vehicles in the first five months of this year, down 12 percent from the same period last year, according to LMC Automotive.
The Shenzhen-based company, which is partly owned by U.S. billionaire Warren Buffett, also makes mobile phones and rechargeable batteries.
