With their revenue growth stagnating, auto parts companies find themselves compelled to slash costs. Recently, the incident involving Changzhou Xingyu Automotive Lighting Systems Co., Ltd., which laid off a large number of fresh graduates, has garnered widespread attention. According to reports, during its autumn recruitment campaign in 2025, Xingyu hired over 400 college graduates from the class of 2026. However, just a month after these new hires joined the company, they were presented with a stark choice: either opt for 'voluntary resignation' or be reassigned to frontline operational roles. In the end, labor contracts of more than a hundred individuals were terminated. Once the incident came to light, the Changzhou Municipal Human Resources and Social Security Bureau stepped in to conduct an investigation. Xingyu subsequently issued an apology letter and unveiled a compensation plan. This plan included providing living allowances to aid in job-hunting efforts, offering free accommodation, and reaching out to other companies to secure suitable positions for the affected graduates. The laid-off fresh graduates reported that they had received the living allowances and expressed relative satisfaction with how the situation was handled. As a leading domestic supplier of automotive lighting products, this incident has inevitably cast a shadow over Xingyu's brand image, highlighting the broader challenges faced by the automotive industry.