Electric vehicle manufacturer Nio has refuted recent reports suggesting additional staff reductions, asserting that the company has no intentions of implementing further layoffs. In response to a Bloomberg article indicating potential workforce adjustments to cut costs and enhance efficiency, Nio released a brief statement emphasizing its commitment to remaining dynamic in the markets where it operates.
Nio’s founder, chairman, and CEO, William Li, had previously communicated plans for organizational optimization in an internal letter dated November 3. The initial proposal outlined cuts of approximately 10 percent of positions, with the adjustment slated for completion by the end of November.
While certain departments were reportedly tasked with preparing reserve lists for potential layoffs, sources cited by Bloomberg suggested that the original dismissals could potentially widen to 20 to 30 percent within specific units. The rumored cuts were said to primarily affect non-core businesses or those requiring significant investment without delivering quick returns, while core functions such as sales reportedly remained in a hiring mode.
The Bloomberg report also highlighted delays and adjustments to some of Nio’s international expansion plans, including the entry into the US market, with changes taking place earlier this year.
As of December 31, 2022, Nio reported having 26,763 full-time employees, according to its 2022 annual report.
In the November 3 internal letter, William Li outlined the company’s commitment to improving resource efficiency and trimming investments in projects not contributing to financial performance over a three-year period. While local media outlets speculated varying percentages of layoffs across Nio’s businesses, Li, in a subsequent earnings call on December 5, clarified that reductions would target non-performing segments, with core business areas and technologies remaining a focus for continued investment.
Li disclosed that Nio had recently hired over 3,000 employees, contributing to its existing sales force of about 5,700. Regarding in-house battery manufacturing, Li stated that it would not likely improve gross margins within three years, prompting the company to adopt alternative approaches, such as commissioning production to reduce costs.
Despite adjustments in certain areas, Nio affirms its commitment to ongoing investments in core technologies to maintain a competitive edge. Li hinted that upcoming models, to be unveiled at Nio Day 2023, would showcase some of the world’s leading technologies.
