ZEEKR (ZK) shares plummeted 5.01% in Thursday's intraday trading following news that its parent company, Geely Group, is consolidating its in-house digital cockpit system R&D teams. This move is part of Geely's broader restructuring efforts aimed at streamlining its workforce and improving efficiency across its various brands.

According to a source with direct knowledge of the situation, Geely is merging three existing units that employ nearly 2,000 engineers responsible for developing digital cockpit systems. The consolidation will integrate teams and investments from ZEEKR, Lynk & Co, and Geely brands, which have previously developed cockpit systems independently. This follows Geely's recent integration of its smart driving R&D teams, signaling a significant shift in the company's approach to technology development.

While Geely stated that there are "no plans for redundancies," investors appear concerned about the potential impact on ZEEKR's operations and innovation capabilities. The consolidation could lead to job losses and may affect ZEEKR's ability to differentiate itself in the competitive electric vehicle market. As Geely aims to sell more than 5 million vehicles annually by 2027, this restructuring move underscores the challenges faced by Chinese automakers in balancing efficiency with brand identity in the rapidly evolving automotive industry.