Chinese electric carmaker Nio plans to cut 10% of its workforce amid “fierce competition,” CEO William Li said Friday.
The job cuts will be completed by November.
“The coming two years will witness the most intense competition during the transformation of the automotive industry in an environment full of uncertainty,” Li told employees in a letter seen by CNBC.
He added that Nio has been analyzing its two-year operating plan over the past two months, and that over the last two weeks, the company “identified the business priorities and developed a detailed plan for organizational and business optimization.”
The company is focusing on investing in tech, cutting projects that don’t contribute to the financial performance in three years and ensuring the Nio’s core products are released on time, Li said.
Musk’s automaker began cutting the prices of its cars in China last year to stoke demand, forcing rivals to do the same. Nio first resisted any price declines, but ultimately carried one out in June.
Xpeng, another Chinese EV startup, has restructured its operations, including cutting jobs.
