Jiyue, a premium electric vehicle maker backed by Baidu, plans to downsize and seek more capital to tackle competition in China’s EV market.

The Shanghai-based company revealed that it will halt projects that do not contribute to its financial stability and merge certain business units to reduce redundancy.

Jiyue’s CEO, Xia Yiping, acknowledged the challenges in a letter to employees, emphasizing that significant restructuring is crucial for the firm’s survival.

Details regarding which business units may close or the potential impact on employees have not yet been disclosed.