Chinese EV darling Nio to cut 10% staff amid ‘fierce competition’ | TechCrunch

Nio, the Chinese carmaker known for its sleek, premium electric SUVs, has started a new round of layoffs as intense competition propels it to cut costs and regroup resources.

In an internal letter seen by TechCrunch on Friday, Nio’s CEO William Li says the company is expected to reduce “around 10%” of its positions after weeks of discussions over the firm’s two-year operational plans.

The decision was made based on its newly defined priorities to continue its long-term investment in core technologies; ensure it has the sales and service capabilities to compete; ensure its products and brands are released as scheduled; consolidate duplicate departments and remove inefficient positions; and improve resource efficiency and cut project investment that doesn’t contribute to its financial performance in the upcoming three years.

The reorganization will be completed in November.

“I’m sorry to colleagues who may be impacted by the adjustments. This is a tough but necessary decision against the fierce competition,” Li says in the letter. “Our journey is a marathon on a muddy track. Please stay focused on efficient execution and improvement of system capabilities. Power up.”

In June, Nio slashed the prices of all its models by 30,000 yuan or $4,200 as it marched into a price war triggered by Tesla in China, the world’s largest auto market.

This is a developing story…