AI Chip Startup Cambricon Reported to Have Conducted Layoffs Without N+1 Compensation

On Chinese office social platform Maimai, a number of workers claiming to be from Chinese AI chip startup Cambricon revealed that the corporate is conducting layoffs with out an N+1 wage compensation, as reported by Southern Metropolis Daily on April 23.

Some workers wrote that “Cambricon will lay off staff this year without N+1 compensation. Those who are not laid off will see significant reductions in bonuses and salary increases. Hardware positions will continue recruiting a small number of employees while software recruitment has almost stopped. The management hopes to keep the total number of employees within 600.” In addition, some have disclosed that “the proportion of new graduate student employees among those being laid off at Cambricon is as high as 80%.”

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According to the report, an worker at Cambricon confirmed that layoffs have been going down and a few groups’ year-end bonuses had been decreased for many who remained after the cuts. The worker additionally talked about that some latest graduates have been retained, however couldn’t affirm if it was up to 80%. Most of the workers who have been laid off belonged to the software program division, and it’s estimated that a whole bunch of individuals have already been affected by these job cuts.

Regarding those that stay employed at Cambricon, this worker disclosed that some groups’ year-end bonuses weren’t decreased however did affirm there have been reductions in different groups’ year-end bonuses as talked about in on-line posts. However, discussions about wage raises haven’t occurred but. As for issues over N+1 compensation adjustments, he acknowledged all his colleagues nonetheless had N+1 plans however admitted some didn’t obtain their annual bonus or any compensation.

After this information broke out, Wang Haibo, Director of Human Resources at Beijing-based Cambricon, responded on Maimai saying information about retaining headcount beneath 600 is fake and these layoffs solely goal workers who failed to meet efficiency requirements, and N+1 compensation nonetheless exists. He additionally acknowledged that “performance-based compensation is a common management tool and an ongoing measure for healthy development of an enterprise.”

On the opposite hand, Cambricon has not too long ago attracted consideration due to its hovering inventory worth. Boosted by frequent AI computing energy upgrades, Cambricon’s share worth has risen sharply since December 30, 2022, from 55.60 yuan ($8.06) per share to a excessive of 271.47 yuan per share on April 20 – a rise of almost 298%.

On April 20 night, Cambricon issued a press release relating to irregular fluctuations in its inventory buying and selling costs stating that it doesn’t immediately have interaction in creating or promoting AI utility merchandise (equivalent to ChatGPT-like functions).

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