The Chinese electric-vehicle startup NIO will lay off just over 20% of its workforce, the company said on Tuesday.
The announcement came in the company's second-quarter earnings release, in which it reported a net loss of $478.6 million on revenue of $219.7 million. The company's second-quarter net loss was 25.2% greater than in the first quarter and 83.1% greater than during the second quarter of 2018. NIO said in a separate press release that it would cancel its second-quarter earnings call.
Vehicle deliveries slowed during the second quarter, falling to 3,553 from 3,989 in the first quarter despite the company's introduction of its ES6 crossover SUV in June. After delivering 837 vehicles in June, deliveries jumped to 1,943 in August.
By the end of the third quarter, NIO expects to reduce its global workforce to around 7,800 from over 9,900 in January. The company had cut its US workforce twice earlier this year. The latest round of cuts amount to 21% of its roster.
NIO's financial struggles come as auto sales in China, the world's largest passenger-vehicle market, declined over 12% during the first half this year, following the country's first annual auto-sales decrease since 1990. China's government has also cut subsidies for electric vehicles.
NIO's stock price has fallen by over 60% since it began listing its shares on US exchanges in September 2018, as of Tuesday morning. Earlier this year, the company recalled 4,803 ES8 SUVs following reports of three vehicles catching fire.
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