Staffers at the company learned of the cuts via a Sunday email from CEO Jia Yueting. The chief executive will be decreasing his salary to $1, and some members of management are taking salary cuts beyond the 20 percent threshold, though that likely won't provide much comfort to the folks in the factory seeing their pay reduced starting next week.

The cuts were announced just weeks after Faraday Future was accused of trying to back out of a deal with Chinese real estate company Evergrande Health Industry Group. The firm's backing was initially viewed as a potential saving grace for Faraday, which has suffered major setbacks by way of abandoned factories, an executive exodus and CEO troubles. Faraday's Yueting accused Evergrande of failing to fulfill its financial promises to the company, and Evergrande returned the skepticism by saying it got manipulated into giving the electric car company $700 million to save it from going under.

While Faraday Future takes a hatchet to its workforce, the company is also dealing with a number of contractors knocking on its door and demanding pay for back work. It's starting to look like the lights might go out on the electric car maker.

The company's full statement is below: