By LIU Shuang

XPeng Motors was recently found to have broken recruitment contracts with over 20 fresh graduates. On Friday, XPeng made a statement blaming “adjustments” and “optimization of the pay system,” saying that only a small number of fresh graduates were affected.

Since the beginning of 2021, the EV maker has hired more than 10,000 new employees, including about 1,600 fresh graduates, with 900 more expecting to begin working this July.

Earlier this month, a graduate complained on social media that he had signed an agreement with the company last year, but the offer had been withdrawn, and 5,000 yuan (US$750) was offered in compensation. More than 20 students had similar stories. XPeng broke the contracts only after the spring recruitment peak, making it extremely difficult for the graduates to find alternative jobs.

In 2021, XPeng delivered nearly 100,000 units, ranking first among the new forces in car manufacturing. In the first four months of this year, it delivered over 43,500 vehicles, doubling deliveries in just a year, while still managing to lose 4.8 billion yuan. Layoffs and terminations may have only just begun.