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With the rapid development, there are many hidden dangers behind it. According to foreign media reports, the company has laid off 70 employees in two offices in California, including the company's headquarters in North America.

According to a spokesman for the California Department of Employment Development, NIO fired 20 employees in the North American headquarters office in San Jose and 50 employees in the San Francisco office, which is currently closed. NIO submitted its notice on April 9 and will enter into force on June 8.

NIO did not comment on the news.

Founded in November 2014, NIO officially listed on the New York Stock Exchange under the symbol "NIO" on September 12, 2018, priced at $6.26 per share, and has fallen to $4.72 per share.

In the pace of development, NIO is always one step ahead of other new car-building forces, and under the condition of high-speed development seizing the opportunity, it also lays many hidden dangers for Ulai. In the 2018 financial results, these hidden dangers officially broke out.

The "failed" annual results put NIO on hold, delivering 11348 new cars for the year, with revenue of 4.951 billion yuan, a net loss of 9.6 billion yuan, and a 92 per cent increase in loss compared with the same period last year. In addition, NIO decided to cancel its original plan to build its own factory in Jiading, Shanghai.

Subsequently, Li Bin, founder of Xilai, mentioned the unfavorable situation of the company in an internal open letter. "after four years of rapid development, we have established a global organizational structure." However, the rapid development has also brought some problems, such as duplication of functional departments, unclear job tasks, unclear job responsibilities and incompetence of individual employees. We hope to solve these problems through the optimization of management efficiency this year. "

Therefore, NIO decided to remove duplicate departments, fire 3 per cent of employees, and limit the total number to 9500; do not spend money that is not necessary to ensure the efficient use of funds and avoid unnecessary investment waste.

NIO did not explain the layoffs in North America, but it can be seen that overstaffing has become another obstacle to the company's development.

At present, the demand in the market is gradually declining, delivering only 3989 ES8 units in the first quarter of this year, but the company said it had exceeded expectations. The second model, the ES6, will be delivered in June. Li Bin said that the ES6 is a strategic product that will enter a larger market segment and needs to ensure that subsequent production deliveries can meet market demand in a timely manner.

Lulai, which locates middle and high-end brands, directly faces the competition from Tesla. Since Model 3 entered China, the market demand of NIO has been affected, and after domestic Tesla is officially put into production and listing in China in the future, NIO will need more measures.

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