Vietnamese Electric Vehicle maker VinFast is reportedly downsizing jobs in the United States and Canada as a part of its restructuring plan. This comes as a preparation for the company to enter the public market in the US.
(Photo : FREDERIC J. BROWN/AFP via Getty Images)
The VF-8 electric vehicle from VinFast, a Vietnamese automaker producing electric cars and SUV's, is on display at their showroom in Santa Monica, California, on July 18, 2022. - VinFast opened six California showrooms last week, including a new dealership in Santa Monica, with showrooms in San Diego, San Mateo, Berkeley, and Corte Madera as well a groundbreaking for their first North American factory that will be held later this year in North Carolina.
The VF-8 electric vehicle from VinFast, a Vietnamese automaker producing electric cars and SUV's, is on display at their showroom in Santa Monica, California, on July 18, 2022. - VinFast opened six California showrooms last week, including a new dealership in Santa Monica, with showrooms in San Diego, San Mateo, Berkeley, and Corte Madera as well a groundbreaking for their first North American factory that will be held later this year in North Carolina.
Downsizing Jobs
VinFast announced that it will be cutting its workforce both in the United States and Canada. Based on a report from Reuters, the company is restructuring its major overseas market as it struggles with the shipment of its first cars and potential stock listing.
The company has been aiming to expand its offerings in the United States, where several competitors are currently residing and producing EVs.
During its announcement last January regarding the merged operations of the US and Canada into a single business unit, VinFast did not announce any job cuts. They recently hired 150 people in the country and located them in sales, support, and distribution roles.
As of the moment, VinFast did not announce how many jobs would be affected by the restructuring plan in both countries. However, a LinkedIn post from a former VinFast leader Hitesh Vansh stated that nearly 35 roles were affected by this matter.
"The past 4 months have been an experience like no other. From meeting and collaborating with some of the industry's most talented professionals, to building a team and program with the intention to launch a service nationwide for a startup," Vansh stated.
Managers had also been told to prepare lists that could cut up to 30% of staff in headquarters operations review by company founder and chairman Pham Nhat Vuong. A spokesperson from VinFast stated that these job cuts would not include staff from Vietnam, where the company's factory and engineering operations are located.
Instead, they will be replacing employees who do not meet the company's requirements, hence the review. New replacements will be recruited after the review and final deliberation of the higher-ups.
Also Read: VinFast Files IPO in the US, Could Be the Only Vietnamese Company Listed
Expansion Strategy
VinFast has been expanding its EV offering in the global market. According to TechCrunch, this includes a mobile service network and over-the-air firmware updates. A direct-to-consumer sales model is included to attract international markets.
As the company plans to become an EV maker hub, VinFast is also pushing to release an EV charging network in the United States. Although the employees who handled this project are affected by the mentioned job cuts.
A $4 billion vehicle assembly plant in North Carolina is also awaiting by VinFast for regulatory approval to begin the construction. The company aims to star production in the said plant in 2024.
Last November, VinFast shipped its first batch of 999 electric vehicles to the United States, reaching the targeted number for its first delivery of VF8 sport utility vehicles. While the company works on software updates, some vehicles have been held at a port on the US West Coast.
Related Article: VinFast Releases Details Behind VF 6 and VF 7, Reservations to Begin in March 2023
