NIO’s Sub-brand Alps Starts Laying off Employees
After the announcement of organizational optimization by NIO‘s CEO Li Bin last Friday, NIO‘s sub-brand, Alps, has also started lay-off. It is reported that after the adjustment, Alps will no longer stand as an independent project, and its personnel will be allocated to various departments within NIO, resulting in corresponding job cuts.
However, insiders have informed domestic media outlet Jiemian News that Alps will continue to independently launch vehicle models in the future.
Previously, in the all-staff announcement, Li Bin clearly stated the company’s priorities for the next two years, which include the timely launch of nine core products from NIO‘s three brands. Alps, positioned in the mid-range market, is expected to begin deliveries in 2024. According to NIO‘s projections, Alps is expected to achieve monthly deliveries of over 50,000 vehicles, undertaking the task of achieving sales volume scalability that NIO has been unable to achieve.
In the same announcement, it was also made clear that NIO would merge redundant departments and positions in the near future, transform inefficient internal workflows and divisions of labor, and eliminate inefficient positions. This move aims to accelerate the improvement of organizational efficiency. In fact, NIO has long been trapped in organizational inertia. Li Bin openly admitted at the all-staff meeting that the execution at the management level has not been effective. In the past, it only took three months for the highest internal efficiency to be transmitted from top to bottom, but now it takes nine months.
NIO employees revealed that Alps’ lay-off procedure was quite efficient, with interviews conducted and completed within ten minutes, and those being laid off leaving the company on the same day. Regarding severance compensation, the N+2 or N+3 scheme will be determined based on mutual agreement.
