On August 19th, the Chinese EV startup NIO (WEILAI) once again boarded the hot search, the reason is that there are media reports that NIO is in the process of a new round of layoffs, it has closed its office in Silicon Valley, and plans to return to SSE STAR Market from the US New York Stock Exchange, saying that “participating operators have IDG, Hillhouse Capital “.
In this regard, Li Bin, founder, chairman and CEO of NIO, responded that it was “rumor” and “nonsense”, and NIO officially responded later: “The Silicon Valley office has been in normal operation and staff optimization is in order. In the near future, NIO has no plans to return to SSE STAR Market.”
In fact, the layoffs of NIO have been fermented for a long time. On March 21 this year, a user who claimed to be a former employee of NIO posted comments on NIO’s massive layoffs and sales scams in the online Q&A community, which triggered widespread concern about the operation of NIO.
Since then, NIO has filed a lawsuit with the Shanghai Jiading District People’s Court on the grounds of “infringement of reputation”. Recently, NIO said that it was found that the owner of the account corresponding to the mobile phone number was not a former employee of NIO. The publication of the relevant content about NIO was subjective speculation and fabrication.
Although NIO has always disagreed with the “layoffs”, “employee optimization” has been going on. It is reported that NIO had about 8,400 employees as of the end of July, which was reduced by 1,400 compared with the number of employees (about 9,800) disclosed by Li Bin in March this year. Qin Lihong, co-founder and president of NIO, told the media at the time: “We have been doing local optimization this year to improve operational efficiency, and this is what we should do at this stage.” At the same time, however, the size of NIO’s branch offices in North America is also being streamlined.
There are voices in the industry that NIO’s practice of optimizing the number of employees is directly related to the company’s loss pressure. In the first quarter of this year, NIO’s revenue was 1.6 billion yuan and the net loss was 2.62 billion yuan. At the same time, NIO has been on the market since its listing. The stock price also fluctuated significantly. As of 16:00 EST on August 19th, the price of NIO was US$3, which was more than 50% lower than the issue price of US$6.26 when it was listed in September last year. This has a big impact on start-ups that are still in the growth stage. The rumors of “NIO turned to the SSE Star Market” will cause a lot of discussion in a short time, and it is also because the financial situation of NIO has been receiving much attention.