Chinese EV giant NIO-SW (09866.HK) has launched widespread layoffs affecting key departments, including UR Fellow (after-sales customer service), PT Energy, NIO House operations, after-sales stores, and terminal sales teams. According to sources cited by a Chinese tech platform, employees were informed last week about the dismissals, which are expected to impact approximately 10% of the workforce.
Layoff Breakdown and Regional Impact
The extent of layoffs varies by region. In Shanghai, the UR Fellow team, comprising around 80 members, experienced a 10% reduction, with 7-8 employees dismissed. However, the situation in Shenzhen is far more severe, with a reported 50% workforce cut in the same division.
NIO has offered compensation and reassignment options as part of its layoff packages. Interestingly, some affected employees have already transitioned to Xiaomi Auto, which is actively expanding its user service operations.
NIO Stock Surges Despite Workforce Cuts
Despite the workforce reductions, NIO-SW saw a significant stock price jump of 9.46%, reaching HKD41.65. Trading volume surged to 6.013 million shares, with a turnover of HKD248 million. Short selling reached HKD188.94 million, accounting for 31.28% of total trading activity.
Strong Market Performance and Industry Comparison
NIO-SW’s year-to-date (YTD) performance is up 15.37%, outperforming the automobile manufacturing industry average of 14.15%. Over the past month, NIO-SW climbed 23.54%, more than doubling the industry’s 10.59% gain.
Automotive Market Shifts and Competition
These layoffs come amid an evolving competitive landscape, with rivals like Xiaomi Auto aggressively expanding their footprint in the EV sector. Meanwhile, HSBC Global Research recently updated its ratings and target prices for Chinese automakers, signaling continued investor interest in the sector.
With NIO restructuring its workforce while experiencing strong market performance, industry watchers will be closely monitoring the company’s next moves as the competitive EV race intensifies.
