May 25, 2024
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Chinese Electronic Vehicle startup NIO has laid off 70 employees across two Silicon Valley offices, one of which is now closed, according to a filing with California’s Employment Development Department. The cuts started in early April, shortly after the startup announced it was laying off 3 percent of its workforce in China.

Twenty employees were let go from the company’s North American headquarters and R&D center in San Jose, California, while 50 employees were cut from NIO’s San Francisco office, which housed some of the startup’s user interface and experience teams. The San Francisco office has been closed.

The cuts are small relative to NIO’s total number of employees the startup disclosed it had 640 employees in the San Jose office alone at the end of 2018 and some 10,000 worldwide, according to the company’s financial filings but they’re a sign that the young electric automaker’s early momentum is cooling.

“After four years of rapid growth, we’ve set up a global organization. However, fast development has also posed issues like repetitive functional departments, undefined work tasks, unclear work responsibilities, and insufficient work for certain people,” a spokesperson for NIO said in a statement. “We would like to solve them by optimizing management efficiency this year.”

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