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Xilai Motor Silicon Valley laid off staff again this year, involving every department.

2024-11-17 Update From: AutoBeta autobeta NAV: AutoBeta > News >

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AutoBeta(AutoBeta.net)09/13 Report--

It seems that Wei Lai layoffs have just passed, and recently foreign media reported that Wei Lai Automobile has just implemented another layoff for American employees this year. The move will lay off 62 employees at the company's Silicon Valley office in San Jose, California, according to a filing from the California Department of Employment and Development.

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According to JoAnn Yamani, NIO's head of North American communications, the layoffs are part of the company's "optimization efforts" but will involve various departments. At present, NIO's business in the United States is mainly focused on R & D and engineering.

The layoffs are the second round of layoffs in the United States this year, after NIO laid off 70 employees and closed an office in San Francisco in May. According to financial filings, as of early 2019, the company had 640 employees in Silicon Valley.

In fact, affected by the downturn in the auto market, NIO recently announced lower-than-expected results for the first quarter of 2019, and car deliveries are declining. In the second half of the year, a number of senior executives of the company resigned. In the previous round of layoffs, according to an internal letter from Li Bin, chairman and CEO of NIO Automobile, the email showed that NIO Automobile planned to lay off 1200 people by the end of September this year. In addition to measures such as the elimination of the last position starting in March this year, NIO Automobile planned to lay off 2200 people by the end of September, reducing the total number of employees of the company to 7500. And this figure is only the company's public data, authenticity has yet to be verified. According to insiders, NIO actually laid off more than half of its employees.

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There is no doubt that under the pressure of funds and delivery, NIO Automobile has to start the "slimming plan" again. During the rapid development of NIO, the total number of employees is about 9500, during which there have been many layoffs. In September, NIO will continue to reduce 1200 jobs worldwide and retain 7500 people by the end of September. Compared with the peak period, NIO layoffs rate exceeded 20%.

It is difficult to realize self-hematopoiesis by Internet car-building, and the development process is bound to experience painful period. In the past three years, NIO Automobile has accumulated losses of nearly 20 billion yuan. Continued high consumption, Wei Lai funds also have pressure.

In addition to the policy retreat, China's new energy vehicles in July for the first time sales decline, but the impact has not retreated, August sales year-on-year decline further expanded. According to the data of China Automobile Association, the production and sales of new energy vehicles in August were 87,000 and 85,000 respectively, down 12.1% and 15.8% respectively from the same period last year.

However, according to the data show, in August this year NIO ES6 on the number of 1812 vehicles, month-on-month growth of 63.6%, and ES8 sales have not been announced. However, in July, due to the launch of ES6, it seized a lot of ES8 sales, causing its sales to decline sharply.

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In any case, for NIO Automobile, this year will still be a very challenging year. Under the severe situation of the current automobile market, it is urgent to improve the competitiveness of products and at the same time, the cost will continue to optimize the personnel.

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