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Tesla job cuts: Tesla’s recent global job cuts will affect staff in China, the automaker’s second-largest market after the United States. The layoffs are impacting various teams, including the sales department, as stated by two sources familiar with the matter.
According to the Reuters report, CEO Elon Musk announced on Monday that the company is laying off more than 10% of its workforce worldwide due to declining sales and increasing competition in the electric vehicle market.
In China, some members of Tesla’s sales team have already been informed about the layoffs, with more than 10% expected to lose their jobs, as per one source. The impact is not limited to the sales team, with other departments also feeling the effects of the workforce reduction.
Tesla China has yet to comment on the situation, and both sources preferred to remain anonymous due to restrictions on speaking to the media. Requests for comments from the Shanghai and Beijing local governments have not been answered.
ALSO READ | Elon Musk-led Tesla signs strategic deal with Tata Electronics for semiconductor chips: Report
The job cuts in China come at a time when Tesla is facing stiff competition in the country, which is the world’s largest auto market. Rivals like BYD are aggressively introducing new electric vehicle models, leading to a price war in the market.
Analysts from Gartner and Hargreaves Lansdown believe that the global job cuts reflect the cost pressures Tesla is experiencing as it focuses on developing new models and artificial intelligence technologies.
Earlier this month, Tesla reported a drop in global vehicle deliveries for the first time in almost four years, highlighting the challenges the company is currently facing.
According to the Reuters report, CEO Elon Musk announced on Monday that the company is laying off more than 10% of its workforce worldwide due to declining sales and increasing competition in the electric vehicle market.
In China, some members of Tesla’s sales team have already been informed about the layoffs, with more than 10% expected to lose their jobs, as per one source. The impact is not limited to the sales team, with other departments also feeling the effects of the workforce reduction.
Tesla China has yet to comment on the situation, and both sources preferred to remain anonymous due to restrictions on speaking to the media. Requests for comments from the Shanghai and Beijing local governments have not been answered.
ALSO READ | Elon Musk-led Tesla signs strategic deal with Tata Electronics for semiconductor chips: Report
The job cuts in China come at a time when Tesla is facing stiff competition in the country, which is the world’s largest auto market. Rivals like BYD are aggressively introducing new electric vehicle models, leading to a price war in the market.
Analysts from Gartner and Hargreaves Lansdown believe that the global job cuts reflect the cost pressures Tesla is experiencing as it focuses on developing new models and artificial intelligence technologies.
Earlier this month, Tesla reported a drop in global vehicle deliveries for the first time in almost four years, highlighting the challenges the company is currently facing.
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