(Yicai Global) Aug. 26 -- Nio is to make a further 1,200 employees redundant by the end of next month as the new energy vehicle maker struggles with mounting losses, its co-founder said in an interview with Yicai Global.

"We're fully responsible for this firm and need to make sure it can survive in any climate," said Qin Lihong. "We're losing weight and cutting fat, not amputating."

Media reports earlier this month flagged a new round of layoffs at the Shanghai-based startup, which was said to have 8,800 employees, down from 9,500 in January. Nio has been planning more redundancies since June, Qin told Yicai Global. "If needed, the company can slim even further," he said.

Nio has entered a new development stage in which its organization and resources need further optimizing to improve operating efficiency, said Qin, who is also Nio's president. In the beginning, the firm "spent money to buy time" to attract talent and build supply chains, he added, so operations and expenditure were not at their best.

The company is running a CNY19.9 billion (USD2.8 billion) deficit, after losing CNY9.6 billion (USD1.4 billion) last year and CNY2.6 billion this year, its earnings reports show. Since pricing its initial public offering in New York last September at USD6.26 a share, the stock has more than halved in value. 

Last month, Nio defined its core positions and talent, streamlined its organization and prepared new incentive plans to keep skilled workers, Qin said. As part of its cost saving drive, the firm is also selling off equity in its Formula E racing team and better positioning its sales networks.

To break even, Nio needs to produce and sell between 50,000 and 100,000 vehicles, Qin said. As of July 31, it had delivered 19,727, some 9,044 of which were sold in the first seven months of this year.

Its sport utility vehicle sells for around CNY400,000 (USD56,000). It is the only Chinese brand with a price tag within the range of foreign-funded luxury cars.