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Chinese EV maker Nio sees AI, robots replacing 30% of workforce by 2027 to improve efficiency, cut costs
- The move to deploy a higher level of automation comes on the heels of the company laying off 10 per cent of its staff this month
- Nio envisions full automation at its plants in future through the use of advanced AI and robotic technologies, vice-president Ji Huaqiang says
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Daniel Renin Shanghai
Nio, one of China’s top three builders of premium electric vehicles (EV), aims to reduce its workforce by a third by 2027 as it rapidly replaces them with robots.
Earlier this month, the company said it had cut 10 per cent of its workforce to boost efficiency and stay competitive.
The Shanghai-based carmaker is actively pursuing a higher level of automation in production and also plans to slash managerial positions by 50 per cent as it introduces more artificial intelligence (AI) technologies at its plants, according to Ji Huaqiang, vice-president of manufacturing, logistics and operations.
“We want to resort to AI technologies to largely reduce reliance on skilled workers and technicians, and hence save more labour costs,” he said on Friday. “If 80 per cent of our decisions [in manufacturing] can be made by AI, it will enable us to reduce 50 per cent of our managerial positions in 2025.”
Industrial robots could help the company cut the use of workers on the production lines by 30 per cent between 2025 and 2027, he added.
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