Written by Cláudio Afonso | info@claudio-afonso.com | LinkedIn | X
The electric vehicle (EV) manufacturer Nio has already started informing and meeting with its teams in China about a second round of layoffs amid market pressure and lower sales, internal people told EV.
Nio‘s HR Department in China will conduct meetings in the coming days, with employees uncertain about the extent or specific terms of the layoffs.
In early December — a few weeks after Nio‘s first lay off— Bloomberg reported that some departments “were asked to prepare reserve layoff lists, which may widen the original dismissals to 20% to 30% within the unit”, citing people familiar with the matter. At the time, Nio denied the report in a brief statement.
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In November 2023, Nio’s CEO Li Bin sent an internal email to all the employees announcing that the company would need to reduce “around 10 percent” of the teams adding that it “is a tough but necessary decision against the fierce competition”.
“We still have a gap between our overall performance and expectations,” Nio‘s CEO William Li added later in the email.
According to the annual report published earlier this week by the company, Nio had 32,820 employees as of the end of 2023. Despite the layoff in late 2023, the company still ended the year with additional 6,100 employees.
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In the fourth quarter of 2023, the company recorded a net loss of 5.37 billion yuan ($756 million) which took its annual deficit to 20.7 billion yuan ($2.9 billion). In March, Nio delivered 11,866 vehicles, an increase of 14.3 per cent year over year.
Last week, Baillie Gifford — which started investing in Nio shares shortly after the IPO in late 2018 — submitted a filing to the Securities and Exchange Commission (SEC) reporting that trimmed its stake in Nio by 83.43 percent selling 96,011,757 Nio shares.
In the first quarter of the year, Nio delivered a total of 30,053 units, meeting the company’s guidance despite the adjustment done in late March from 31,000-33,000 units to 30,000 units.
Written by Cláudio Afonso | info@claudio-afonso.com | LinkedIn | X
