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Business · TMT
China’s new energy vehicle maker NIO cuts staffs to reduce losses
CKN
2019/08/27 05:49:24
1,860
Nio, New Energy Vehicles, employee redundant

Aug 27, 2019 (China Knowledge) - According to an internal letter issued by Li Bin, chairman and CEO of Nio Auto (NIO), the company is to make a further 1,200 employees redundant by the end of next month as the new energy vehicle maker struggles with years of losses. After the adjustment, the number of employees in the company will remain at about 7,500.

In the first half of this year, Nio has already carried out a round of layoff. At that time Nio said that the layoff was to optimize the internal organizational efficiency. Public data showed that at the beginning of August, the total number of employees in Nio was more than 8,800, 1,000 fewer compared with 9,800 when the number of employees in Nio was at its highest.

These series of actions have aroused public speculation about Nio’s future. In response, Qin Lihong, president of Nio said the company is losing weight and cutting fat, not amputating.

Nio is running a RMB 19.9 bln (USD 2.8 bln) deficit, after losing RMB 9.6 bln (USD 1.4 bln) last year and RMB 2.6 bln this year, its earnings reports show. Since pricing its initial public offering in New York last September at USD 6.26 a share, the stock has more than halved in value.

Just on 25 Jun this year, subsidies for new energy vehicles in China were drastically reduced and sales of new energy vehicles have declined, posing severe challenges to 4-year-old Nio.

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