Chinese EV darling Nio to cut 10% staff amid ‘fierce competition’

Nio, the Chinese automaker known for its sleek, premium electric SUVs, has begun a new round of layoffs as intense competition pushes it to cut costs and consolidate resources.

In an internal letter seen by TechCrunch on Friday, Nio CEO William Li said the company is expected to reduce its positions by “approximately 10%” after weeks of discussions about the company’s two-year operational plans.

The decision was made based on its newly defined priorities to continue its long-term investment in core technologies; ensure it has the sales and service capabilities necessary to be competitive; ensure that its products and brands are marketed as intended; consolidate duplicate departments and remove ineffective positions; and improve resource efficiency and reduce investments in projects that do not contribute to its financial performance over the next three years.

The reorganization will be completed in November.

“I am sorry to colleagues who may be affected by the adjustments. This is a difficult but necessary decision in the face of fierce competition,” Li said in the letter. “Our journey is a marathon on a muddy track. Please stay focused on efficient execution and improving system capabilities. Power on.

In June, Nio cut prices all of its models by 30,000 yuan or $4,200 as it engaged in a price war sparked by Tesla in China, the world’s largest auto market.

This is a developing story…

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button