Asia Tech Wire (Nov 8) -- Chinese electric car maker Hozon New Energy Automobile Co., Ltd, commonly known as Neta Auto, has denied layoffs of up to 70% of its workforce.

The news comes amid reports that Neta Auto has initiated massive layoffs on Thursday, with insiders saying the cuts could reach up to 70%.

The electric car startup denied the rumors later in the day, saying it is building a more centralized and efficient organizational structure through measures such as streamlining operations, focusing on its core business, organizational optimization and compensation and performance reforms.

During the reform period, Neta Auto is integrating by divisions in line with business requirements and future development needs.

At the end of October, Neta Auto announced that it would implement a series of cost-cutting and efficiency-enhancing initiatives such as organizational streamlining, elimination of redundant staff, business focus and flat management.