Chinese EV maker NIO plans to reduce its workforce by at least 1,200 by the end of September, CEO Li Bin revealed in an internal e-mail (as reported by Gasgoo).

Bin said NIO will retain roughly 7,500 staff after the cut. The layoffs are part of the company’s recent efforts to control cost, improve operation efficiency, and concentrate resources on core businesses. He said the staff reductions will mainly come from departments like human resources and law, and will have little effect on core operations such as R&D and user services.

NIO announced earlier this month that it delivered 837 new vehicles in July, versus 1,340 units a month ago. It says its delivery performance in July was negatively impacted by multiple factors. That month, the company completed a voluntary battery recall for 4,803 ES8s. Also, the Chinese auto market saw a decrease in monthly automobile sales for the 13th month in a row.

Source: Gasgoo via CNET