Tesla confirmed a major global workforce reduction, impacting employees in sales, technology, and engineering across the company’s two biggest markets – the US and China, Reuters reported on Tuesday, citing five sources familiar with the matter.
This move follows an internal memo from CEO Elon Musk on Monday, announcing layoffs exceeding 10 per cent of the global workforce due to declining sales and intensifying competition in the electric vehicle market.
US service centres see immediate cuts
Several service centres in the US reportedly saw immediate layoffs, with a focus on sales staff and technicians. One source claimed a location even eliminated all front-of-house staff.
On LinkedIn, a Tesla programme manager in California shared a spreadsheet listing over 140 laid-off employees, primarily engineers, seeking new opportunities.
Shanghai sees smaller cuts
In China, members of the sales team were notified of redundancies, with estimates suggesting layoffs exceeding 10 per cent of the force.
However, a source indicated that Tesla’s largest plant in Shanghai will see a smaller reduction, affecting several dozen employees, as per the statement.
The layoffs come amidst a challenging environment for Tesla. The company faces fierce competition in China, particularly from BYD, and slowing sales in the United States.
