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Nio Inc Contemplates Further Workforce Reduction Amidst Market Pressures

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Aqsa Younas Rana
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Nio Inc Contemplates Further Workforce Reduction Amidst Market Pressures

Chinese electric vehicle (EV) manufacturer, Nio Inc, is reportedly contemplating a substantial expansion in workforce reductions amid a challenging market environment and internal restructuring. The company, which recently broadcasted a plan to cut 10% of its staff, is now said to be considering escalating the scale of job cuts to a striking 20% to 30% in some units, as per insiders.

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Reductions Target Non-Core Business Areas

The layoffs are expected to primarily affect non-core business areas, or those that do not yield rapid returns and demand significant investment. The move comes as Nio seeks to enhance efficiency and cut costs in response to a rapidly changing market landscape characterized by intensified competition and a shift in consumer preference towards more cost-effective plug-in hybrid vehicles.

Efficiency Drive Amid Market Pressures

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Despite the lack of immediate response from Nio, reports indicate that certain departments within the company have been instructed to prepare reserve layoff lists. This development follows Nio's efforts to streamline operations and improve profitability, with the company reportedly considering spinning off its battery manufacturing division. This strategy is seen as a measure to achieve profitability and enhance operational efficiency in a fast-paced, competitive industry.

Other Industry Developments

Meanwhile, the EV industry continues to grapple with various challenges and developments. PensionDanmark's decision to sell its holdings in Tesla owing to the latter's refusal to engage with labor unions, CATL's rejection of security threat allegations from Duke Energy, and Norway's union's plan to block Tesla car shipments are among the latest industry news. Discussions at the COP28 climate conference in Dubai also underscore the sector's pivotal role in combating climate change.

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