Tesla to Cut Jobs Worldwide, Impacting Key Markets US and China | Corporate Update

Tesla, the electric car giant, is making significant job cuts globally, including in its two biggest markets, the U.S. and China. CEO Elon Musk announced in an internal memo that the company will be laying off more than 10% of its workforce as it faces challenges with falling sales and increased competition in the electric vehicle market.

Sources revealed that several U.S.-based service centers have already seen heavy layoffs, particularly in sales and technical roles. In China, members of Tesla’s sales team are also being notified of redundancies, with more than 10% expected to lose their jobs.

In California, a Tesla program manager posted a list of over 140 staff, mostly engineers, who have been laid off and are now seeking new opportunities. Despite the layoffs, the company’s largest plant in Shanghai will only be letting go of a small proportion of staff, amounting to “several dozen” people.

Tesla’s stock fell 2.5% in premarket trading following the announcement of the job cuts. The company’s headquarters in the U.S. and its China unit have not yet responded to requests for comment.

In Germany, reports of 3,000 job cuts at Tesla’s plant were refuted by the company, stating that they are evaluating how to implement the layoffs in compliance with labor laws. The German union IG Metall criticized Tesla for not consulting with the works council before notifying staff of the job cuts.

With increasing competition in China and slowing sales in the U.S., Tesla is facing challenges that have led to the need for these job cuts. Despite the setbacks, the company remains committed to its mission of revolutionizing the automotive industry with electric vehicles.