The Shanghai-based company had a workforce of about 7,000 at the end of 2022, according to data from corporate registry website Qichacha.
The EV start-up’s lay-offs reflect its effort to stay afloat amid escalating competition in the domestic market and rising losses.
The company said it plans to cut project spending to help boost its financial performance over the next three years, while consolidating duplicate departments and roles to streamline its organisation.
The job cuts form part of a larger organisational restructuring at Nio, based on more than 30 internal sessions conducted by the company over the past two months to prepare itself for intense domestic competition in the next two years.
Nio on Saturday said its development efforts are proceeding on track and that it remains committed to competing in the EV market, according to a company statement sent to the Post.
China’s EV market sputters as reluctance to spend crashes into a slowing economy
China’s EV market sputters as reluctance to spend crashes into a slowing economy
Although Nio has recently delivered five new EVs and seized over 40 per cent share this year in the pure battery-powered segment priced over 300,000 yuan (US$41,000), the company still missed its revenue goals, according to the internal letter.
In the second quarter, Nio saw its net losses widen by 27.8 per cent year on year to 6.1 billion yuan. Revenue fell 14.8 per cent to 8.77 billion yuan.
Chinese EV maker Nio to issue US$1 billion in convertible senior notes
Chinese EV maker Nio to issue US$1 billion in convertible senior notes
In the third quarter, data from Nio show that it delivered 55,432 vehicles to record a 75.4 per cent year-on-year increase. In October, the company shipped 16,074 vehicles to post a 59.8 per cent year-on-year improvement.
In total, Nio has delivered 126,067 EVs in the 10 months through October, up 36.3 per cent year on year, but still lagging behind its 2023 sales target of 240,000 vehicles.