Nio (NYSE:NIO) stock is rising higher on Friday after the electric vehicle (EV) company announced plans to lay off a significant chunk of its employees.
According to an internal letter sent to employees, Nio is going to be reducing its headcount by around 10%. The company is enacting these job cuts as a way to deal with “fierce competition” in the EV space. It expects to complete a reorganization plan, which includes these layoffs, this month.
William Li, CEO of Nio, said the following about the layoffs in the internal letter obtained by TechCrunch:
“I’m sorry to colleagues who may be impacted by the adjustments. This is a tough but necessary decision against the fierce competition […] Our journey is a marathon on a muddy track. Please stay focused on efficient execution and improvement of system capabilities. Power up.”
Nio Stockholder Reactions on Friday
With this layoff announcement, shares of NIO stock are seeing extra attention from investors. That brings with it decent trading of the EV company’s shares. As of this writing, around 25 million shares have traded, as compared to its daily average of roughly 46.9 million shares.
NIO stock is up 4.8% as of Friday morning but is still down 15.3% year-to-date (YTD).
Investors who are searching for more of the latest stock market news are in luck!
We have all of the top stock market stories that traders need to know about on Friday! A few examples include additional layoffs news from Delta Air Lines (NYSE:DAL) and Maersk (OTCMKTS:AMKBY), as well as more info on Nio’s layoffs. You can get up to speed on all of these matters at the links below!
More Stock Market News for Friday
- Delta Air Lines Layoffs 2023: What to Know About the Latest DAL Job Cuts
- Maersk Layoffs 2023: What to Know About the Latest AMKBY Job Cuts
- Nio Layoffs 2023: What to Know About the Latest NIO Job Cuts
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
