Nio (NYSE:NIO) is tightening its belthard. The EV maker has kicked off a sweeping round of layoffs across Europe and the U.S., aiming to cut global operating costs by 25%. Design and R&D teams were hit first in Europe, where Q1 sales tumbledNorway down 40%, Germany down 37%. In the Netherlands, their market head just jumped ship to Hyundai. Meanwhile, U.S. operations are slimming down fast, with Nio’s San Jose team reportedly shrinking to under 100. All this as shares slide to a new five-year low, down 10% at 10.17am today.
Back in China, the company is cutting deep across after-sales, showroom, and service divisionsimpacting up to 10% of staff in some areas. The moves are part of a new internal model, CBU, where departments manage their own return on investment. CEO William Li says the era of top-down layoffs is overbut also admits when cuts are needed, Nio moves fast. We do what needs to be done, he told China Entrepreneur Magazine. That includes walking away from projects that don’t deliver. The goal now? Ruthless prioritization and a sharper path to profitability.
Despite the chaos, Nio isn’t slowing product plans. Nine new modelssome new, some refreshedare set to roll out across its three brands by year-end. Management is sticking to its 2025 target: presence in 25 countries, though now with a stronger focus on ROI and leaner execution. Li believes the company can reclaim market share with tech-packed models built at competitive cost. But with staff exiting, markets cooling, and investors nervous, Nio’s next moves will need to land perfectlyor risk falling even further behind in the EV race.
This article first appeared on GuruFocus.