Chinese electric vehicle maker NIO will lay off 70 employees in two of its United States’ offices and will shut down its San Francisco office, ThePaper reported, citing The Verge.

A filing with California’s Employment Development Department disclosed that it will lay off 20 staff at its North American headquarters and R&D center in San Jose, while another 50 employees were let go from its San Francisco office.

The company has about 10,000 employees globally, with about 640 based in the San Jose office at the end of 2018.

“After four years of rapid growth, we’ve set up a global organization,” a spokesperson for NIO was quoted as saying.

“However, fast development has also posed issues like repetitive functional departments, undefined work tasks, unclear work responsibilities and insufficient work for certain people. We would like to solve them by optimizing management efficiency this year.”