Since April NIO Has Slashed 10% Of Workforce
NIO experiences difficult times in China and the only way forward is to sell more cars.
According to the latest media reports, NIO is adjusting its employment to a new situation, which turns out to be much more difficult than initially anticipated.
The Chinese premium all-electric car manufacturer reportedly has decreased the number of employees from 9,800 in April to about 8,800 in August.
A shrinking number of employees suggest that the production is lower than it should be and the perspective for a quick rebound is misty.
There are various things that make NIO’s growth path difficult – from ghe eneral Chinese automotive industry decline (sales are falling), through decreased incentives for BEVs in China, battery recall of NIO ES8 and probably simply lower demand for NIO BEVs (less than 1,000 sales in July).
Media noted also that co-founder Jack Cheng left NIO, which comes on top of a few other high-profile departures, including Li Zhang, the former head of software.
We will get a clearer image of NIO’s perspective when the company shows its second-quarter financial results.
Source: asia.nikkei.com, ft.com via electrive.com
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