Nio (NIO) considers expanding job cuts
China’s Nio Inc. (NYSE: NIO) is reportedly considering further workforce reductions following its recent announcement of a 10% job cut last month.
According to a report released by Bloomberg on Thursday, the electric automaker has instructed certain departments to prepare supplementary lists for potential layoffs, potentially expanding the original reduction from 10% to 20% or even 30% within specific units.
The intended cuts are expected to mostly affect non-essential sectors or those not likely to yield immediate returns or demanding substantial investments.
These additional cutbacks follow Nio's earlier statement in November about its plans to trim 10% of its workforce, aiming to enhance efficiency and lower expenses amid intensifying market competition.
In China, the demand for electric vehicles has slowed, with consumers showing a preference for more cost-effective plug-in hybrids.
Shares of NIO are up 1.29% in pre-market trading on Thursday.
By Michael Elkins | [email protected]