Nio Inc., a Chinese electric vehicle (EV) manufacturer, is considering additional job cuts following its recent announcement of a 10 per cent workforce reduction last month.
Media reports suggest that certain departments have been instructed to create backup lists for potential layoffs, possibly increasing the initial workforce reduction from 10 per cent to a range of 20 to 30 per cent within the unit. The cuts are expected to primarily target non-core businesses, or those that are incapable of yielding immediate returns, or demand substantial investments.
These extra job cuts follow Nio’s announcement in November about reducing 10 per cent of its workforce to enhance efficiency and cut costs amid increasing competition. In China, the demand for electric vehicles has declined, with consumers showing a preference for more cost-effective plug-in hybrids.
However, the company representative reportedly clarified that there haven’t been additional job cuts, and that the company is commited to making necessary adjustments in the markets it operates.
In a letter to the staff, William Li, CEO, Nio, described the earlier layoffs as a tough but essential decision due to fierce competition.
Li mentioned this week that Nio is looking to make its organization more efficient and reduce costs. Despite receiving a $738.5 million funding in June from an Abu Dhabi government-backed fund, Nio is thinking about cutting more jobs, indicating ongoing financial difficulties despite the recent investment.
The Shanghai-based electric vehicle manufacturer, is known for its unique battery-swapping stations. With over $5 billion in investments, the company plans to expand to 25 countries and regions by 2025, as announced about two years ago.
