Electric car manufacturer Nio cuts ten percent of jobs
"This is a tough but necessary decision in the face of tough competition," Nio wrote to employees in an email obtained by the Reuters news agency. The job cuts are to be completed in November. Nio is also cutting back on long-term investments. Projects that do not contribute to earnings within three years will be postponed or canceled.
Demand for electric cars has weakened in China as consumers prefer cheaper plug-in hybrids. At the same time, the price war instigated by Tesla is putting pressure on car manufacturers in the highly competitive market.
Nio is one of the Chinese car manufacturers already present in Europe. According to insiders, Nio is considering expanding its European business through dealerships in order to boost sales, as Reuters reported last month, citing insiders. Most recently, Nio operated six stores in Germany, Norway, Sweden, Denmark and the Netherlands. Worldwide, there were 137 "Nio Houses", as the branches in central urban locations are called.
Nio announced a cost reduction strategy, including a 10% job cut, due to decreased demand for electric cars and intense competition in the market, particularly from Tesla. The manufacturer aims to save resources by postponing or canceling projects with no earnings potential within three years, and is also considering expanding its European business through dealerships to boost sales.
Source: www.ntv.de
