Chinese smart-home appliance maker Dreame has reportedly cut around 10,000 jobs between June and the end of August, according to the Chinese tech outlet IThome, which cited multiple former employees including HR staff. The layoffs and departures affected both probationary and regular staff, with compensation ranging from 0.5N for probationary employees to N+1 for others, where N represents months of salary. The company's car and phone teams are said to have almost no staff left.
Business units dismantled
The entire AI smart lock business unit was reportedly eliminated, while the research and development team of the large home appliance business unit was largely disbanded, retaining only sales, supply chain, and other core functions. Since April or May, suppliers have been visiting Dreame's headquarters in Suzhou to demand payment, with some reporting that the R&D and purchasing staff they dealt with have already left, leaving them with no one to contact. However, some suppliers say Dreame has recently been paying off debts in installments.
On August 25, Dreame issued a statement about its strategic focus and business development, saying it had adjusted some business units that were in an exploratory phase. The company said it would further focus on four main business directions: smart home, outdoor and garden, smart mobility, and embodied intelligence. It pledged to continue investing in core technology, product development, advanced manufacturing, global markets, and service systems.
Dreame had previously responded to reports that it was abandoning vehicle mass production, saying its car business would be merged into its industrial research institute, focusing mainly on general technology exploration. There were also reports that the company behind its car project, under the name 'Starry Sky Plan,' might be dissolved, with employees receiving up to N+1.5 in compensation.
Implications for the EV industry
Dreame's retreat from car manufacturing is notable in the context of China's crowded electric-vehicle market. The company, known for its robotic vacuum cleaners, had been exploring entry into the automotive sector, but the intense competition and high costs of vehicle development have led it to scale back. The move reflects a broader trend where some non-automotive companies are pulling back from ambitious EV projects, focusing instead on core competencies. For the EV industry, this means fewer new entrants and a consolidation of resources among established players.
