Tesla accelerates job cuts in China due to sales decline, impacting multiple departments | Global News

Tesla Inc. is facing escalating job cuts in China, as reported by Bloomberg News. The electric vehicle maker, led by Elon Musk, is under pressure to regain market share in the world’s largest auto market.

The latest round of layoffs began earlier this week, following cuts in mid-April as part of Tesla’s plan to reduce global headcount by more than 10 percent. The layoffs are affecting various departments, including customer service staff, engineers, production line workers, and the logistics team at Tesla’s Shanghai plant, which accounts for more than half of the company’s global production.

It remains unclear how many employees will be impacted by the layoffs and what effect it may have on Tesla’s operations in China. The company’s representatives in China have not yet responded to requests for comments.

The job cuts come amid a global slowdown in electric vehicle demand, with Tesla experiencing its largest layoffs ever. However, the impact has been particularly significant in China, where competition from rivals like BYD Co. and weak consumer sentiment have affected sales. Shipments from Tesla’s Shanghai factory dropped 18 percent in April, despite a 33 percent growth in the overall market for new-energy vehicles.

In addition to the layoffs, Tesla’s China business will see the return of Tom Zhu, who previously led the carmaker’s Asia Pacific operations and spearheaded its entry into China. Despite the challenges, Tesla recently received in-principle approval from Chinese government officials to deploy its driver-assistance system in China, which is expected to provide a revenue boost.