NIO lays off 10 percent of staff: report

Chinese electric vehicle (EV) manufacturer NIO conducted a 10 percent layoff last week across various departments, according to tech outlet Leiphone.

The company offered compensation packages and internal transfer options to those affected, according to Leiphone.

The layoffs primarily targeted sales teams but also impacted the service sector, which has long been a focus for NIO.

Notably, departments such as the UR Fellow after-sales service team, NIO House (offline showroom), and power tech sector were affected.

The layoffs affected approximately 10 percent of staff, with regional variations.

For instance, in Shanghai, the UR Fellow team, which has around 80 employees, saw a 10 percent reduction, with 7 to 8 employees being let go.

In contrast, the UR Fellow team in Shenzhen experienced a 50 percent cut, with some former employees reportedly joining Xiaomi Auto, which is currently building its user service division.

Employees said the layoff process was rapid, with some staff completing their handovers just 20 minutes after being notified and accepting a compensation package.

NIO hasn't responded to the report so far.

The company was recently embroiled in rumors of significant layoffs.

In February, it rejected allegations of a 50-percent workforce reduction, emphasizing that its legal department had filed police reports on the sources of these claims.

Despite the denials, NIO has acknowledged internal adjustments, including optimizing its organizational structure and reallocating resources to improve efficiency.

The company's financial performance may be a driving factor behind the changes.

Last year, the company reported a net loss of 50.6 billion yuan (US$6.99 billion) in the third quarter, despite a 35 percent year-on-year increase in deliveries to 170,000 vehicles.

High R&D expenditure, totaling over 50 billion yuan, and the costly expansion of its battery-swapping infrastructure have further strained its finances.

While NIO's February 2025 deliveries showed a 62 percent year-on-year increase to 13,192 vehicles, its cumulative losses since 2018 have reached 80.7 billion yuan, raising concerns about its path to profitability.

The company aims to achieve a single-quarter profit by this year's fourth quarter, but achieving this goal will require significant cost-cutting measures and operational improvements.