• Publish Your article
  • Editorial Policy
  • Contact
  • Advertise
Wednesday, August 10, 2022
  • Login
No Result
View All Result
UK Herald
  • Home
  • Politics
  • Business
  • Entertainment
    • All
    • Sports
    Cheeky fan steals show by flashing BUM and twerking live during BBC Commonwealth Games TV coverage

    Cheeky fan steals show by flashing BUM and twerking live during BBC Commonwealth Games TV coverage

    Former Premiership star Chris Mayor banned for FIVE years after being found guilty of doping and drug trafficking

    Former Premiership star Chris Mayor banned for FIVE years after being found guilty of doping and drug trafficking

    England rugby chiefs to ban trans women from playing against females in major U-turn after lengthy review before season

    England rugby chiefs to ban trans women from playing against females in major U-turn after lengthy review before season

    Gloucester lock Ed Slater diagnosed with Motor Neurone Disease aged 33 and forced to retire from rugby

    Gloucester lock Ed Slater diagnosed with Motor Neurone Disease aged 33 and forced to retire from rugby

    South Africa 30 Wales 14: Heartbreak for Dragons in Test series decider but Wayne Pivac still hopeful ahead of World Cup

    South Africa 30 Wales 14: Heartbreak for Dragons in Test series decider but Wayne Pivac still hopeful ahead of World Cup

    South Africa 12-13 Wales RESULT: Anscombe’s HISTORIC kick fires Dragons to FIRST win over Springboks on African soil

    South Africa 12-13 Wales RESULT: Anscombe’s HISTORIC kick fires Dragons to FIRST win over Springboks on African soil

    New Zealand vs Ireland rugby: Date, live stream, TV channel, kick-off time and team news for HUGE second Test match

    New Zealand vs Ireland rugby: Date, live stream, TV channel, kick-off time and team news for HUGE second Test match

    South Africa vs Wales rugby: Date, live stream, TV channel kick-off time and team news for international test encounter

    South Africa vs Wales rugby: Date, live stream, TV channel kick-off time and team news for international test encounter

    Is England vs Barbarians rugby on TV? Channel, live stream FREE, teams and kick-off time for TODAY’S Twickenham event

    Is England vs Barbarians rugby on TV? Channel, live stream FREE, teams and kick-off time for TODAY’S Twickenham event

  • Lifestyle
    • All
    • Fashion
    • food
    • Health
    • Travel
    Can you ever make a theme park trip luxury? We go to Fairmont Windsor Park to find out

    Can you ever make a theme park trip luxury? We go to Fairmont Windsor Park to find out

    These are the unique getaways people have been lusting over on Airbnb

    These are the unique getaways people have been lusting over on Airbnb

    My teeth have been left as tiny stumps and I’m in constant pain after dental treatment in Turkey ruined my smile

    My teeth have been left as tiny stumps and I’m in constant pain after dental treatment in Turkey ruined my smile

    I’m a food expert – how to make homemade cookies WITHOUT using your oven – they taste DELICIOUS

    I’m a food expert – how to make homemade cookies WITHOUT using your oven – they taste DELICIOUS

    These are the best cities to live in the world (no, the UK doesn’t make the cut)

    These are the best cities to live in the world (no, the UK doesn’t make the cut)

    Sun, sea, and super tasty seafood: Why Agios Nikolaos in Crete is the place to be

    Sun, sea, and super tasty seafood: Why Agios Nikolaos in Crete is the place to be

    I had unusual Covid side-effect that lasted weeks after testing positive – my heart rate was through the roof

    I had unusual Covid side-effect that lasted weeks after testing positive – my heart rate was through the roof

    I work at Wetherspoons – customers always say the same annoying things when I’m on shift

    I work at Wetherspoons – customers always say the same annoying things when I’m on shift

    The most underrated city breaks you should book for your next trip

    The most underrated city breaks you should book for your next trip

    Patients with severe illnesses will not get treatment as NHS misses targets for clearing Covid backlog

    Patients with severe illnesses will not get treatment as NHS misses targets for clearing Covid backlog

    Trending Tags

    • Golden Globes
    • Mr. Robot
    • MotoGP 2017
    • Climate Change
    • Flat Earth
  • Health
  • Opinion
  • Science
  • Tech
  • Crypto
  • Travel
  • Real Estate
  • Sports
  • More
    • Press Release
UK Herald
No Result
View All Result

Behind Mass Layoffs – Pudu Robotics is Facing Serious Cash Crunch

by Site Author
July 15, 2022
0

Pudu Robotics (or “Pudu Technology”), a Chinese enterprise of food delivery robots, has been recently reported making major layoffs.

“We’ve decided to cut businesses and headcount of our company to survive. It’s a difficult decision,” wrote Zhang Tao, founder and CEO of Pudu Robotics, in a leaked email to Pudu employees on July 4th.

(The leaked email to Pudu employees sent by Zhang Tao)

In fact, this is the second large-scale layoffs Pudu has made since the beginning of this year. In the first round that took place a few months ago, 1/3 of its workforce was cut. But the headcount reduction did not save the company from its crises. In less than half a year, the Pudu management had to make another major layoffs. This time, the functions most affected, as revealed by the dismissed employees, are R&D, Manufacturing and Service.

Perhaps no one of the company would ever expect such a rapid deterioration of business. In September 2021, Pudu Robotics celebrated completion of its C2 financing, securing a copious funding of 1 billion CNY.  However, in less than 1 year, the company was caught up in a series of troubles that led to its mass layoffs. What’s wrong with Pudu?

Serious Cash Crunch

Pudu Robotics has been facing a cash crunch since the end of 2021, which was admitted by the CEO in a live streaming conference at the end of last year, stating that the company “could hardly make ends meet”. According to industry forecasts, if Pudu is unable to find new financial support, the company will last for no more than 3 months before going bankrupt. Based on multiple sources, the CEO’s strategic mistakes and unethical behaviors have lost him the faith and trust from the investors. The prospect of Pudu Robotics is gloomy in the capital market.

As revealed by its former employees on a variety of social networking platforms, Pudu Robotics was unable to compensate the dismissed employees in accordance with Chinese labor laws. Many were laid off without being properly compensated and had to resort to labor arbitration.

Information from the industry supply chains disclosed that since the beginning of 2022, Pudu’s order quantity and payment have been “dismally small”. It has been owing the suppliers a lot of money and unable to make payments, which caused the turbulence and malfunction of its manufacturing capability. Pudu’s supply chain is therefore on verge of collapse, and it has been caught up in disputes with the suppliers for the payment issues.

Under such circumstances, the Pudu management team decided to carry out a large-scale work stoppage.  “In order to save operating costs and improve productivity…we will arrange work stoppage for some of our colleagues… The list of employees for work stoppage, payments during the period and the time for work resumption will be notified separately. Since there is no need to carry out work during the work stoppage, the corresponding system permissions (of work accounts) will be temporarily closed, and will be restored after the resumption of work.” Stated in a leaked email from Pudu’s HR team to the staff.

(The leaked email of Pudu’s work stoppage notice)

Toxic Business Model

Industry experts pointed out that Pudu Robotics has never worked out a reliable business model to guarantee profit and sustainable development.

A former sales leader of Pudu Robotics revealed that there was an unhealthy ethos inside Pudu where the sales team only pursued quick success and instant benefit. Reports show that Pudu utilized down payment to increase its contract amount. That is to say, if a distributor is unable to pay a contract at once, Pudu would suggest a down payment of 10%-20%. According to the former sales leader, Pudu had coaxed distributors into stocking excessive inventory by means of down payments, but never provided any help for sell-out.

Many distributors held grudges against this unethical business practice of Pudu Robotics. According to one of its distributors, they were going through hard times liquidating the old and surplus inventory, and some distributors even went bankrupt because of this.  In South Korea, which is Pudu’s first and most successful overseas market, an information source close to the Pudu’s local distributor revealed that the inventory of the Korean distributor has exceeded 1,000 units. The distributor stated that it would take them more than 1.5 years to complete the sell-out based on the current sales velocity. Notwithstanding, Pudu’s sales team is still pushing the distributor to place more orders.

Pudu’s reckless pricing scheme is another problem, as revealed by the former sales leader. For instance, the sell-in price of BellaBot, Pudu’s flagship model of food delivery robot, is 6,000 USD for the European market, but the price is only 3,000 USD in some Asian countries.

 

Warnings from Industry Experts

Considering the company’s financial difficulties as well as the disclosed unethical practices, it is not unreasonable to surmise that the company will come up with new schemes in order to survive. Some industry experts warned that Pudu’s low-priced products are likely to be “rug pulls” for quick money, with which the company plans to save its financial crisis and run away with the customers’ money. Due to the mass layoffs, many departments of the company are unable to function properly after the radical workforce reduction. According to a comment in one of Pudu’s social media accounts, the company refused to provide after-sales services: “After buying the machine, the head office refuses to deal with after-sales service.”

(Screenshot of Pudu’s Douyin post comments )

Related Posts

Redactable Delivers AI-Driven Redaction for Confidential Documents

Redactable Delivers AI-Driven Redaction for Confidential Documents

by Site Author
August 8, 2022
0

While redacting confidential documents before sharing them is important, there are several things that can go wrong if you decide to do this on your own. In fact, there are many cautionary...

Silver proves to be a big hit as Minted sees rapid growth

by Site Author
August 7, 2022
0

The FCA licensed fintech company Minted App, lets customers invest as much or as little as they want each month, as well as withdraw their physical gold and more recently, silver. Since...

5 Advantages Of Working With An Illustration Agency

by Site Author
August 4, 2022
0

You wear many hats when you’re a freelance illustrator; artist, accountant, marketer, and many more. You have to walk the extra mile to succeed compared to those under illustration agencies. One way...

MYABCENGLISH.COM CEO and Founder Timir Naha to be honored with ” Mahatma Gandhi Samman” at the House Of Commons, British Parliament.

by Site Author
August 3, 2022
0

NRI Welfare Society of India is honoring Mr. Timir Naha, CEO and Founder Of Myabcenglish.com and Myabcreading.com on the occasion of 153 Years of Celebrating the Mahatma at the House of Commons,...

Thousands of web3 anonymous hackers trying to mess with interactive art in New York Times Square?

Thousands of web3 anonymous hackers trying to mess with interactive art in New York Times Square?

by Site Author
July 31, 2022
0

With the rapid explosion of Bitcoin, the concept of web3/NFT/Dao has since become a hot topic, stimulating the emergence of a growing number of fun and interesting artistic creations. The most prominent...

Foreign Skrilla Is Breaking Barriers With The Release Of Her New Album “Skrillatic”

by Site Author
July 29, 2022
0

Belizean American rapper Foreign Skrilla drops her new album “Skrillatic”. The album includes features from Lil June Afro Punta , OMB BloodBath, King Rome & King Brack. With the music industry being...

Next Post
Former US President Donald Trump’s first wife Ivana Trump passed away

Former US President Donald Trump's first wife Ivana Trump passed away

Popular News

Now international passengers will not need to upload Covid Vacx certificate on Suvigha portal

Now international passengers will not need to upload Covid Vacx certificate on Suvigha portal

August 10, 2022
10 missing including 9 Sri Lankan athletes who went to Birmingham to compete in Commonwealth

10 missing including 9 Sri Lankan athletes who went to Birmingham to compete in Commonwealth

August 10, 2022
Sable, Paul and Murali wrote India’s success story at the Commonwealth Games

Sable, Paul and Murali wrote India’s success story at the Commonwealth Games

August 10, 2022
In Jagdish Trivedi’s program, a donation of Rs 26 lakhs was made for mentally retarded children

In Jagdish Trivedi’s program, a donation of Rs 26 lakhs was made for mentally retarded children

August 10, 2022
Can you ever make a theme park trip luxury? We go to Fairmont Windsor Park to find out

Can you ever make a theme park trip luxury? We go to Fairmont Windsor Park to find out

August 10, 2022
A woman from UP committed suicide in New York and said this in the viral final video…

A woman from UP committed suicide in New York and said this in the viral final video…

August 9, 2022
This Chinese smartphone will be banned in India!

This Chinese smartphone will be banned in India!

August 9, 2022
UK Herald

All Rights Reserved © UK HERALD - The Voice of UK

Important Links

  • Publish Your article
  • Editorial Policy
  • Contact
  • Advertise

...

No Result
View All Result
  • Home
  • Politics
  • UK News
  • Business
  • Science
  • National
  • Entertainment
  • Gaming
  • Sports
  • Fashion
  • Lifestyle
  • Travel
  • Health
  • Food

All Rights Reserved © UK HERALD - The Voice of UK

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In