Hycan, a Chinese electric vehicle startup, has reportedly terminated employees at its Shanghai location and postponed severance payments.

Local media outlet Yicai reported that the compensation, originally due by October 31, has not been paid.

Following significant layoffs in July, around 50 staff remain at Hycan’s Guangzhou headquarters.

These employees are expected to relocate to the Nansha district office amid discussions of potential restructuring.

Hycan faces financial challenges and is struggling to repay over 100 million yuan (US$13.7 million) invested by more than 50 stakeholders.

Recent figures show Hycan sold fewer than 110 vehicles in October, representing an 82.37% decrease year-on-year.