Written by Cláudio Afonso | LinkedIn | X
Nio’s founder and CEO William Li said the Chinese electric vehicle maker will no longer implement top-down layoffs, even as the company sharpens its focus on cost control amid widening losses and intensifying competition.
In a new interview with China Entrepreneur Magazine, Li said Nio had paid “a lot of tuition” over the past ten years. “If we could do it all over again, we definitely could have saved a lot of money,” he said.
Recalling his reputation as a “nice guy” in the early years of the company, he added: “When managing a company, people like to see a feel-good story. Unfortunately, I’m not that type of character.”
“But we do what needs to be done, and we’ll do it very quickly,” he said.
According to the chief executive, “more than 20” vice presidents (VP) “have voluntarily left or were asked to leave” since Nio’s inception in late 2014.
“Over the past 10 years, more than 20 VPs have voluntarily left or were asked to leave,” Li said on Sunday in a media event.
“In September 2018, after our U.S. IPO, I immediately cut headcount—reducing the U.S. team from 700+ to 200+. Those people had taken a lot of time to hire,” Nio CEO added before acknowledging the challenges of balancing feedback with tough decisions, citing past layoffs as necessary steps during difficult periods.
At the time, Padmasree Warrior, Nio’s North America chief responsible for software and technology development, also left the company.
“I get a lot of feedback and try to understand it. But it’s hard to express the real issue—often it’s about setting priorities,” Li noted. “For example, in 2019, we had two rounds of layoffs just to survive. In October 2023, we also laid off over 10% of staff. When something needs to be done, we act quickly.”
In the interview with China Entrepreneur Magazine, Nio’s chief emphasized that the company would no longer conduct company-wide layoffs directed from the top.
“The last time we did that was in November 2023, and we won’t be doing it again,” he said. “For example, with an R&D project—whether to add or reduce headcount is up to you. The company won’t interfere. The company only looks at the operating report and focuses on the final result. As for whether you control the investment (I) or improve the return (R), that’s your decision.”
His remarks come as Nio confirmed last week that it is rolling out a new internal management model known as CBU. Under the system, each department is responsible for calculating its own return on investment as part of the cost-cutting efforts.
Nio is entering a critical phase in 2025, with plans to launch nine new models across its three brands — some fully new, others refreshed versions — between April and December.
In the final quarter of the year, the company will launch a brand-new model under its main brand. “From product definition to cost targets, it is extremely competitive, and will incorporate our latest technologies. We are very confident we can return to center stage and gain sufficient market share in our segment,” Li stated in a separate interview.
The Shanghai-based carmaker also reiterated last week that it remains committed to entering several new markets in 2025 and achieving its long-stated goal of being present in 25 countries and regions by the end of that year—a target first unveiled in January 2021 when Li introduced the ET7 sedan, the first model built on the company’s second-generation NT2.0 platform.
Asked about Nio’s current markets across Europe, Li explained that the company will “continue operating under the direct-sales model, since the investments have already been made,” while adding that it will also “control the scale of investment going forward.”
Nio sold 73 vehicles across its five European markets in February, including 32 in Norway, 25 in Germany, 12 in the Netherlands, four in Sweden and none in Denmark.
Nio Group co-founder and President Lihong Qin added that the EV maker is currently in the contract-signing stage “with more than a dozen countries,” adding that the local partners “must achieve positive profit and cash flow” within the first year.
