The controversial NIO mobile business has undergone significant adjustments in resource allocation and personnel scale since December last year. The mobile software team has been integrated into the digital cockpit team, and redundant positions have been greatly streamlined. William Li was once very determined about developing self-made phones, believing that driver-car connectivity would be a key competitive advantage for future ecosystem experiences. However, the reality is that evaluating investment returns over a 3-year period, the user value enhancement brought by self-made phones is limited and it’s also difficult to achieve commercial returns matching the investment.

The adjustment of the mobile business is also a result of streamlining operations under NIO‘s CBU mechanism. “Positions and projects that do not create user value should be stopped.” During an internal meeting to promote CBU, William Li stated, “Any money spent, any position created, any project initiated or fixed asset invested must bring returns either from external sources or internally. If no one pays or if it doesn’t add up financially, then don’t proceed.”

In addition to the mobile business adjustment, several departments within various clusters of NIO‘s other businesses will proactively undergo organizational streamlining and staff reduction based on annual operational goals in the near future. A senior management member at NIO mentioned that under previous budget-driven circumstances there was a lack of motivation to maintain efficient operations: “Previously everyone only thought about how to get more budget resources and expand their teams as much as possible. Now we need to meet operational targets; without company demands I will actively reduce staff.

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