Chinese EV maker NIO is denying rumors of a second round of layoffs circulating on social media. The speculation comes as several EV makers recently announced plans to cut back.
NIO announced in November it was trimming its staff by 10% amid “fierce competition,” based on a memo reviewed by Bloomberg.
The letter from CEO William Li said the corporate was eliminating duplicate and inefficient roles. Furthermore, projects not expected to generate earnings inside the following three years were delayed or omitted from the plans.
“This is a tough but necessary decision against fierce competition,” Li said, adding, “Our journey is a marathon on a muddy track.”
NIO’s job cuts got here after market leaders like Tesla and BYD aggressively slashed prices all 12 months. NIO cut prices by as much as $4,200 in June because it looked to maintain pace.
After opening orders for the new ET7 this week, all NIO models at the moment are underpinned by its updated NT 2.0 platform.
NIO clarifies no new layoffs are planned
After reports of a new round of layoffs began circulating, NIO set the record straight. The rumors were began by foreign bloggers, making their technique to Chinese social media.
The rumors claimed NIO was implementing one other round of layoffs. Reports cited falling sales and increased competition. Li said he was unaware of the situation.
Rising competition and better rates of interest are making it harder for EV makers to compete. Several automakers have announced plans to cut back their workforce or cut back.
Rivian announced plans to chop one other 1% of jobs after revealing it was shedding 10% of its salaried employees in February.
The news comes after Tesla revealed it was reducing its global workforce by over 10% this week.
Meanwhile, NIO’s sales rebounded in March as new models launched. NIO delivered 11,866 vehicles in March (its highest monthly total in 2024) for 30,053 in the primary quarter.
NIO topped estimates after trimming delivery forecasts just days before the discharge. Refreshed models just like the 2024 ES8, ES6, EC6, and ET5T fueled the expansion.
The EV maker expects the momentum to proceed within the second quarter with the 2024 ES7, ET7, and ET5 rolling out.
NIO’s (NYSE: NIO) stock is down over 50% this 12 months because the EV sector has slipped right into a downward trend. NIO shares are down over 90% from the all-time high of over $62 set in February 2021.
Source: CnEVPost, NIO
Credit : electrek.co