EV maker Nio considers more job cuts after shedding 10% staff: Bloomberg

(Reuters) — Chinese electric vehicle (EV) maker Nio Inc may undertake further job cuts after the company announced plans to cut 10% of its workforce last month, Bloomberg News reported on Thursday, citing people familiar with the matter.

Some departments were asked to prepare reserve lay-off lists, which may widen the original dismissals to 20% to 30% within the unit, according to the report.

The cuts would apply mainly to non-core businesses or ones that would not generate quick returns or require heavy investment, the report added.

Nio did not immediately respond to a Reuters request for comment.

The additional cuts come after Nio said in November that it planned to eliminate 10% of its jobs, as it moves to improve efficiency and reduce costs in the face of growing competition.

Demand for EVs has weakened in China as consumers favour more economical plug-in hybrids.

A Nio Phone is displayed next to a Nio ES8 SUV during the Chinese electric vehicle (EV) maker's tech day in Shanghai, China September 21, 2023. REUTERS/Zoey Zhang

A Nio Phone next to a Nio ES8 SUV at the EV maker’s tech day in September. REUTERS/Zoey Zhang (Zoey Zhang / reuters)

(Reporting by Utkarsh Shetti in Bengaluru; Editing by Rashmi Aich)

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