Nio Inc announced on Friday plans to reduce its workforce by 10% amid what the Chinese electric automaker’s CEO called "fierce competition."
"The coming two years will witness the most intense competition during the transformation of the automotive industry in an environment full of uncertainty," Nio CEO William Li wrote in a letter sent to employees.
The job cuts will be completed by November, according to the company.
Li added that Nio is focusing on investing in tech, eliminating projects that don’t contribute to its financial performance in three years, and ensuring that Nio’s core products are released on time.
The company’s prospects have been impacted by weaker consumer sentiment in China and a price war in that country initiated by Tesla last year, CNBC reported.
Nio first resisted any price reductions but reluctantly did one in June.
Despite operating at a loss, the company said it delivered 16,074 cars in October, up slightly from the previous month and 60% higher than the same period last year.
NYSE-listed shares of Nio rose 4% to $8.13 in late-morning on Friday but have fallen 16% year to date.
Contact Sean at sean@proactiveinvestors.com