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Tesla's global job cuts include leading markets US, China
Apr 16, 2024 2:22 AM

*

Some China sales teams notified of dismissal - sources

*

U.S.-based service centres suffered heavy layoffs -

sources

*

No staff dismissed in Germany yet, discussions ongoing -

Tesla

(Adds U.S. cuts in paragraph 1, 3, 4, Tesla Germany comment in

paragraph 9)

SHANGHAI/BERLIN, April 16 (Reuters) - Tesla's

global job cuts include reducing staff in the U.S. and China,

the automakers' two biggest markets, across sales, tech, and

engineering, five sources briefed on the matter said.

CEO Elon Musk on Monday told staff in an internal memo seen

by Reuters that the company is laying off more than 10% of its

global workforce, as it grapples with falling sales and an

intensifying price war for electric vehicles.

Several U.S.-based service centres saw heavy layoffs

effective immediately, primarily of sales staff and technicians,

one source said. Another location laid off all front-of-house

staff, the source said.

A Tesla programme manager in California posted a spreadsheet

on LinkedIn of over 140 staff, mostly engineers, who had been

laid off and were seeking new jobs.

Two sources said members of Tesla's China sales team were

being notified they were being made redundant, with one saying

more than 10% were losing their jobs.

A third source said that in Shanghai, where Tesla's largest

plant is located, the company will only lay off a small

proportion of staff, amounting to "several dozen" people.

Tesla's U.S. headquarters and its China unit did not

immediately respond to requests for comment. All the sources

declined to be named as they were not permitted to speak to

media.

The Shanghai and Beijing local governments did not

immediately respond to requests for comment.

Tesla Germany refuted reports in German media that 3,000 of

the carmaker's roughly 12,000 staff had been fired, and said it

was evaluating how to implement Musk's orders at the plant.

"We will pursue the measure for Gigafactory

Berlin-Brandenburg against the background of all labour law and

co-determination requirements, bringing in the works council,"

Tesla Germany said on Tuesday in an e-mailed statement to

Reuters, adding no workers had been notified yet.

German union IG Metall on Monday said that Tesla had not

informed or consulted the works council, as is customary in

Germany, prior to emailing all staff.

While German labour law has strict rules on firing staff,

around 1,000 workers at the plant are on temporary contracts,

according to a source with knowledge of the matter, leaving them

more vulnerable to dismissal.

Tesla faces increasing competition in China in a fierce

price war with rivals led by BYD, slowing sales in

the United States, as well high investment costs in new models

and artificial intelligence.

Global vehicle deliveries in the first quarter fell for the

first time in nearly four years, as price cuts failed to stir

demand.

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