Nio is Going to Downsize in the Electric Vehicle Industry!
Chinese electric vehicle manufacturer Nio announced that it will reduce its workforce by 10 percent to adapt to difficult market conditions. The company aims to reduce costs and increase its competitiveness with this move, which is planned to be completed within this month.
Demand for Electric Vehicles is Declining
The reason behind Nio's decision is the decrease in demand for electric vehicles in China. Consumers' shift towards more economical plug-in hybrid models has negatively affected the sales of pure electric vehicles. In addition, the price war initiated by Tesla also suppressed the profitability of electric vehicle manufacturers. Therefore, Nio sought strategic partnerships and cost-cutting measures to improve its performance.
Long-Term Projects Going to be Postponed
In addition to reducing its workforce, Nio also plans to postpone or curtail its long-term projects. The company aims to use its resources more efficiently by suspending projects that will not contribute significantly to financial performance in the next three years. These projects include the development of new models, research and development activities and marketing activities.