BEIJING, China (AFP) — Chinese tech titan Baidu and car giant Geely blamed “huge changes” in the electric vehicle (EV) industry for sudden staffing and operations cuts at their joint electric auto venture this week.

“Due to huge changes in the industry’s competitive landscape, the established business plan could not be executed and operations have encountered challenges,” the companies said in a joint statement shared to their official social media accounts.

Jiyue, the EV project backed by Baidu and Geely, this week told employees it was disbanding some departments, angering staff, according to local media reports.

It was unclear how many employees would be affected, but Baidu and Geely vowed to help resolve payment issues “as soon as possible.”

China is the biggest electric vehicle market in the world, but plans by Chinese automotive firms to expand overseas have been increasingly threatened by thorny trade disputes between Beijing and Western nations.

Jiyue’s struggles could foreshadow challenges ahead for other Chinese EV companies, independent auto analyst Lei Xing told AFP.

“It just shows how difficult it is to compete in the current environment,” Lei said.

Geely and Baidu are both leading players in their industries, Lei added, so “for this to happen is kind of a surprise.”

Plus, the “debacle” at Jiyue isn’t likely to be the last, Lei said.

“I think other brands, as we look into 2025, could be in trouble as well.”