This article originally appeared on ABACUS China’s cash-strapped Tesla challenger NIO is cutting staff yet again as it battles an extraordinary plunge in Chinese car sales this year. The company is laying off 141 employees at its US headquarters, according to a filing with the Employment Development Department in California . The cuts are the result of NIO’s recently announced partnership with Intel’s Mobileye , NIO’s communications director JoAnn Yamani told us. The majority of the layoffs come from NIO’s autonomous driving department, which was historically one of the company’s biggest teams. NIO will now share Mobileye’s self-driving solutions and car designs, though some staff are still working on proprietary technology. “Our partnership enables a significant cost savings for both companies in leading future driving technology,” Yamani said. Over the weekend , NIO CEO and founder William Li said China’s car industry is facing its toughest moment in two decades, partly due to a cut in government subsidies. But he also said the slump in electric car sales comes mostly from commercial vehicles rather than private cars. Li said he remains hopeful about future demand from consumers. For more insights into China tech, sign up for our tech newsletters , subscribe to our award-winning Inside China Tech podcast , and download the comprehensive 2019 China Internet Report . Also roam China Tech City , an award-winning interactive digital map at our sister site Abacus .