- This marks Li Auto's sixth major organizational restructuring this year.
- Li Auto's CEO has begun directly overseeing the human resources department for the first time, placing greater emphasis on streamlining processes.
Li Auto (NASDAQ: LI) has reportedly restructured its organizational structure once again following a significant sales decline this year.
The Chinese automaker announced in an internal memo today that it has consolidated its two human resources departments into a new unified HR department, headed by Yang Haishan and reporting directly to CEO Li Xiang, according to a report by 21jingji today.
This brings the number of departments reporting directly to Li Xiang to five, joining the existing four: brand, strategy, product, and product line.
Yuan Chunfeng, former head of Li Auto's HR department, was on his last day at the company today. Just one day prior to Yuan's departure, Li Wenzhi, former head of the CFO's office, had already left the company, the report said.
This organizational restructuring has been in the works for some time, as Li Xiang determined that Huawei's process framework -- which emphasizes pace over efficiency -- is unsuitable for building an AI-focused organization, a source close to Li Auto told 21jingji.
Li Auto began comprehensively adopting Huawei's management practices in late 2022, transitioning to a matrix organizational structure.
In February 2023, the company brought in former Huawei executive Li Wenzhi to lead the CFO office, reporting directly to CFO Li Tie.
Since 2023, Li Auto's HR department has designed numerous mechanisms tailored to different business units, resulting in more cumbersome workflows than before, noted the 21jingji report.
"Processes are meant to ensure everyone consistently does things right, but before getting anything done, you face countless processes," a former Li Auto recruiter told 21jingji.
Another employee said that having Li Xiang directly oversee HR simplified processes and accelerated approvals.
This marks Li Auto's sixth major organizational restructuring this year, following prior adjustments to its sales system and autonomous driving division, the report noted.
Li Auto experienced robust growth in 2023 and 2024, fueled by strong demand for its extended-range electric vehicle (EREV) models amid limited competition.
However, sales have plummeted this year as more rival models entered the market.
Li Auto delivered 31,767 vehicles in October, marking a 38.25 percent year-on-year decline and the fifth consecutive month of significant contraction.
From January to October, Li Auto delivered 328,916 vehicles, down 16.36 percent year-on-year.
