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Chinese electric carmaker Nio lays off 10 per cent of workforce amid fierce competition in world’s largest EV market
- Nio chief executive William Li Bin described the lay-offs as ‘a tough but necessary decision’ amid fierce competition in China’s vast EV market
- The Shanghai-based EV start-up had a workforce of about 7,000 at the end of 2022, according to data from corporate registry website Qichacha
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Che Panin Beijing
Chinese electric carmaker Nio has cut 10 per cent of its employees in a bid to slash costs, boost efficiency and stay competitive in a market where 60 per cent of all new vehicles will be electric by 2030.
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The move was announced on Friday by William Li Bin, founder, chairman and chief executive of Nio, who described the lay-offs as “a tough but necessary decision” amid fierce competition in the world’s largest electric vehicle (EV) market, according to an internal letter seen by the South China Morning Post.
The Shanghai-based company had a workforce of about 7,000 at the end of 2022, according to data from corporate registry website Qichacha.
Li said Nio’s operational efficiency must be further enhanced to “win the ticket to the final games” ahead in a market that already accounts for 60 per cent of the global EV industry.
The EV start-up’s lay-offs reflect its effort to stay afloat amid escalating competition in the domestic market and rising losses.
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The company said it plans to cut spending on projects that are not expected to help boost its financial performance over the next three years, while consolidating duplicate departments and roles to streamline its organisation.
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