Li Auto Denis Recent Speculation of Lay-offs

Recently, a screenshot has been circulating online regarding potential staff reductions at Li Auto.

The screenshot contains disclosures attributed to a self-professed Li Auto employee. According to the employee, the current status of the company involves the temporary suspension of new offer approvals, the possibility of a minor stock allocation for positions at level 17 and above, contingent on performance evaluations, rendering it non-redeemable for low performers. Additionally, there has been a comprehensive budget reduction of over 30%. The existing staff framework, aligned with an annual sales target of 800,000 units, appears to have a degree of redundancy, prompting forthcoming staff downsizing measures.

On April 8th, Li Auto responded by refuting the aforementioned claims as “baseless misinformation”.

Earlier, on April 3rd, Li Auto issued a company-wide announcement, signaling the commencement of Matrix Organization 2.0 upgrade alongside multiple departmental restructuring initiatives.

The focal point of these organizational adjustments primarily centered on Li Auto‘s CEO office department. Formerly reporting directly to Li Auto‘s Chairman and CEO, Li Xiang, this department encompassed the brand, product, commercial, strategic, and supply departments, comprising approximately 500 personnel.

In the said announcement, the CEO office underwent an official rebranding as the “Product and Strategy Group,” emphasizing a heightened focus on product and strategy while diminishing the emphasis on supply chain and commercial sales functions.

Noteworthy changes include the delineation of new responsibilities within the product line department. These include overseeing the entire lifecycle of vehicle models, collating and synthesizing information from users, experts, partners, and the industry to define products, coordinate interdepartmental efforts, and collaborate closely with R&D and supply teams during product development. Additionally, during product launch phases, the emphasis shifts towards coordination with sales and marketing teams.

Of significance, under the leadership of Senior Vice President of Sales and Service, Zou Liangjun, Li Auto has established the GTM (Go to Market) team. This team is tasked with coordinating the execution of new product launch strategies and assuming accountability for market outcomes.

This organizational restructuring represents a corrective measure following an internal communication by Li Xiang on March 21st. In this communication, Li Xiang reflected on the strategic and operational challenges encountered during the progression of Li Auto, outlining a definitive roadmap for future development strategies.