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Tesla Announces Major Layoffs in US, China, and Germany Amid Sales Slump

Over 10,000 Jobs Cut by Tesla Globally, Affecting US, China, Germany

Tesla Inc. confirmed this week that it is terminating more than 10,000 workers. Later, it was learned that the cuts would include international offices in its major markets, such as the United States and China. The latest layoff surprised some employees, who said they only learned about their termination when they could not scan their IDs to get into the office or company facilities.

Job Terminations Amid Dropping Sales

According to Reuters, Tesla's global workforce reduction will affect staff in many divisions, including tech, sales, and engineering. Five business insiders who were reportedly briefed on the matter shared this detail.

Tesla's chief executive, Elon Musk, explained earlier this week through an internal memo that more than 10% of the workforce is set to lose their jobs. He suggested this move is necessary as the company struggles to cope with falling sales and heightened price wars for electric vehicles.

Global Job Cuts

The US-based EV maker said the latest round of massive layoffs will take effect immediately. One of the company's program managers, based in California, allegedly revealed a spreadsheet showing 140 employees who lost their jobs and are now seeking new ones. Most of them are said to be engineers.

In China, two sources said Tesla had already sent notifications to the local sales team. The note informed them that more than 10% are being laid off. Another source in Shanghai revealed that the automaker's largest production factory will only lose a few staff members, which could mean just a dozen individuals.

In Germany, the local unit of Tesla said, "We will pursue the measure for Gigafactory Berlin-Brandenburg against the background of all labor law and co-determination requirements, bringing in the works council."

The company also appears to have not notified its employees about the terminations. In any case, Autoblog reported that the cuts also included high-performing employees in all regions.

Photo by: Tesla Fans Schweiz/Unsplash

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