Li Auto Cancels Job Contracts with Students Due to Sales Pressure

Carmaker Li Auto (Chinese: 理想) has terminated pre-employment   contractswith some college students who will graduate this summer due to “business adjustment,” meaning the company will cut some posts.

 According to media reports, Li Auto responded that for the inconvenience caused to the students, it would offer to assign them to  new positions or pay a month’s salary as compensation. Also, the company declined to reveal how many students were affected.

 One of the sources said the cancellation of some job contracts with college students is due to the falling sales in April 2022.

 In the first quarter of 2022, Li Auto delivered 31,716 units, up 152.1% year on year. However, the company delivered 4,167 units in April, down 22.77% year on year and decreasing 62.23% compared with the previous month.

 Shanghai has been placed under a lockdown for around two months, putting significant pressure on EV makers to maintain production amid already severe supply chain shortages. He Xiaopeng, the founder and CEO of China’s new energy vehicle maker XPeng, said in April that automakers in China may have to suspend production in May if suppliers in Shanghai are not able to resume work.