The long-awaited “NIO Layoff” has made new progress. On August 22, Li Bin, the founder, chairman and CEO of NIO, issued an internal letter stating that “the company will reduce 1,200 jobs worldwide by the end of September. The adjusted company’s personnel size is about 7,500.” The number of such personnel has decreased by more than 2,300 compared with the number of personnel Li Bin revealed in March this year (about 9,800).
Li Bin said in the letter: “In the past six months, the internal and external environment of the company has undergone great changes. In order to ensure the survival and development of the company, we must adjust our awareness and plans in a timely manner to further control expenditures, improve operational efficiency, and gather resources at the core business… In the past few weeks, I have worked with the heads of various departments to sort out the organizational structure, processes, and tasks of each department in detail to determine the staffing of each department for more efficient operations.” The layoffs are the result of the further lean operating plan of the company.
Since the beginning of this year, NIO has encountered various operational pressures, including vehicle burning and recalls; large losses, long-term stock price declines, layoffs, executive changes, sales declines, etc., as a startup automaker, these are not small challenges for NIO, and this is what Li Bin mentioned as “the internal and external environment has changed a lot.”
Although the layoffs have helped the NIO Auto’s lean operation and financial pressure, Li Bin also expressed his “sorry”: “When everyone joins NIO, they have a lot of expectations. This adjustment will make many colleagues feel disappointed. I sincerely thank all the colleagues who left, and every achievement of NIO is from everyone’s work together, thank you.”
In addition, Li Bin said in his letter that he “is more confident than ever in the past few years.” Because in the development in recent years, NIO has also achieved a lot of results, including the end of July, NIO ES8 has delivered 18,641 vehicles at an average price of nearly 500,000 yuan, which is the first sales ranking of China’s high-end intelligent electric SUV market in the same period. In addition, NIO has also established a research and development, supply chain, manufacturing, quality system and so on, which are being developed around the core technology of intelligent electric vehicles. Based on this, Li Bin finally mentioned that NIO will focus on the action and complete the work that needs to be done one by one.