TOPICS 

    Subscribe to our newsletter

     By signing up, you agree to our Terms Of Use.

    FOLLOW US

    • About Us
    • |
    • Contribute
    • |
    • Contact Us
    • |
    • Sitemap
    Half Tones

    Chinese Automaker Nio Dismisses 1,000 Employees: Report

    Aug 05, 2019

    A Chinese automaker known for electric vehicles has laid off hundreds of employees, mostly in its research and development and marketing departments, tech news site 36Kr reported Thursday.

    Around 1,000 employees — most of whom were still within their probationary periods — have been let go with severance packages of one month’s salary, according to the outlet. Though Nio hasn’t publicly addressed the layoffs, its president, Qin Lihong, told 36Kr that the company currently has around 8,800 employees. According to an internal memo leaked in March, Nio had planned to cut 3% of its staff to “optimize its workforce” and keep its total employment under 9,500.

    When reached Saturday, Nio’s public relations department told Sixth Tone the company is “optimizing its manpower” and “improving efficiency” by continuing to hire new staff. The department neither confirmed nor denied the 1,000 reported layoffs.

    Founded in 2014, Nio has been touted as China’s answer to U.S. automaker Tesla and, along with its competitors, has helped accelerate the country’s aggressive push for new energy vehicles. But such companies are now hitting obstacles in an overcrowded electric vehicle market. In the first quarter of 2019, Nio’s operational losses stood at $390 million, a 78.8% increase compared with the same period the year prior. And in June, the automaker recalled 4,803 of its electric vehicles following a spate of battery safety incidents, further denting the company’s image. (Image: VCG)