Nio Inc.'s stock rose 3.3% early Friday, following reports of the Chinese electric vehicle company's plans to cut 10% of its workforce this month. This strategic move aims to improve efficiency and reduce costs in response to increasing competition, as reported by Reuters.
Focusing on Efficiency and Essential Resources
In an email sent to Nio's staff, the company acknowledged a performance gap and emphasized the need for improved efficiency and adequate resource allocation. The decision to downsize was described as "tough but necessary" in light of the fierce competition faced by the company.
Streamlining Operations for a Competitive Edge
As of Dec. 31, 2022, Nio had a total of 26,763 full-time employees according to its annual report filing with the SEC. Despite reporting a nearly 60% increase in vehicle deliveries for October compared to the previous year, Nio's competitors achieved even stronger growth during the same period.
In October alone, Nio delivered 16,074 electric vehicles, showing a substantial growth of 59.8% from the 10,079 vehicles delivered in the corresponding period last year. This figure includes 11,086 electric sport-utility vehicles and 4,988 electric sedans. Year to date, Nio has delivered a total of 126,067 EVs, representing a significant growth rate of 36.3% compared to the same period last year.
For more information, please read: Nio’s stock bounces after October EV sales jump 60%