Chinese Tesla rival Nio cuts 10% of workforce as CEO predicts ‘intense competitors’

Nio’s ET5 stands on show on the Central China International Auto Show on May 25, 2023, in Wuhan, China.

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Chinese electrical carmaker Nio plans to chop 10% of its workforce amid “fierce competitors,” CEO William Li stated Friday.

The job cuts shall be accomplished by November.

“The coming two years will witness probably the most intense competitors throughout the transformation of the automotive trade in an atmosphere full of uncertainty,” Li informed staff in a letter seen by CNBC. 

He added that Nio has been analyzing its two-year working plan over the previous two months, and that over the past two weeks, the corporate “recognized the enterprise priorities and developed an in depth plan for organizational and enterprise optimization.”

The firm is specializing in investing in tech, slicing tasks that do not contribute to the monetary efficiency in three years and guaranteeing the Nio’s core merchandise are launched on time, Li stated.

“I’m sorry to colleagues who could also be impacted by the changes. This is a tricky however obligatory determination in opposition to the fierce competitors.”

Like many Chinese electrical car startups, Nio has been hit by weak client sentiment on the earth’s second-largest economic system, stiff competitors and a worth struggle kicked off by Elon Musk’s Tesla. 

Musk’s automaker started slicing the costs of its vehicles in China final 12 months to stoke demand, forcing rivals to do the identical. Nio first resisted any worth declines, however finally carried one out in June.

Xpeng, one other Chinese EV startup, has restructured its operations, together with slicing jobs. 

While nonetheless loss-making, Nio has managed to quickly develop its car deliveries. It stated it delivered 16,074 cars in October, up barely on the prior month and 60% larger than the identical interval final 12 months.

Li penned a rallying cry on the finish of his letter to staff. “Our journey is a marathon on a muddy monitor. Please keep targeted on environment friendly execution and enchancment of system capabilities. Power up.”

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