Li Auto has once again restructured its corporate organization amid a steep decline in sales this year, consolidating its human resources operations and tightening executive oversight.
According to a report by Chinese outlet 21jingji, the company announced in an internal memo on Tuesday that its two human resources departments have been merged into a single unified HR unit. The new department will be led by Yang Haishan, who will report directly to CEO Li Xiang.
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The reorganization increases the number of departments reporting directly to Li Xiang to five — joining the brand, strategy, product, and product line divisions. Yuan Chunfeng, the former head of Li Auto’s HR department, officially departed the company on Tuesday. His exit follows the resignation of Li Wenzhi, the former head of the CFO’s office and a former Huawei executive, who left just one day earlier.
Li Auto’s latest changes reflect an ongoing effort to streamline internal management. The company had previously adopted Huawei’s process-oriented matrix structure in late 2022, but sources told 21jingji that Li Xiang now views Huawei’s pace-driven framework as unsuitable for building an AI-focused organization.
Since adopting Huawei-style management, Li Auto’s HR division reportedly developed multiple mechanisms tailored to individual business units, which some employees said led to overly complex workflows. “Processes are meant to ensure everyone consistently does things right, but before getting anything done, you face countless processes,” a former Li Auto recruiter was quoted as saying. Another employee noted that having Li Xiang directly oversee HR has simplified decision-making and accelerated approvals.
See also: Li Auto Deliveries Fall 38.2% in October, Fifth Straight Monthly Decline Despite Strong i6 Orders
This marks Li Auto’s sixth major organizational adjustment in 2025, following previous reshuffles in its sales and autonomous driving divisions.
The company had seen rapid expansion through 2023 and 2024 on the back of strong demand for its extended-range electric vehicles (EREVs). However, sales have weakened sharply this year amid rising competition in China’s new energy vehicle market.