2024-04-16 22:29:38
Elon Musk’s company Tesla is reportedly planning to cut jobs. The car manufacturer is apparently set to cut jobs worldwide.
The electric car manufacturer Tesla is apparently planning to cut more than ten percent of all jobs worldwide. This is reported by the “Handelsblatt”, citing an internal letter from the car manufacturer. The “Electrek” portal also reports a corresponding email. A total of at least 14,000 employees are expected to be affected by the reduction. Tesla had previously reported a year-on-year decline in sales of 8.5 percent in the first quarter.
According to the “Handelsblatt”, the Tesla factory in Grünheide near Berlin is also affected by the job cuts. The newspaper reports, citing two unnamed internal sources, that 3,000 of the 12,500 employees will be laid off.
According to its own statement, the works council in Grünheide does not yet have any information about this. So far there have only been “lots of rumors and a declaration of intent from the company headquarters,” Dirk Schulze, IG Metall district manager Berlin-Brandenburg-Saxony, told t-online. “It is the legal obligation of management not only to inform the works council comprehensively, but also to advise them on how employment can be secured,” continued Schulze. “We can’t speak for the entire committee, but the IG Metaller*innen in the works council will stand up for all employees and every single job, of course also for the temporary workers.” With 16 of 39 seats, IG Metall is the most strongly represented group on the Grünheider Gigafactory works council.
“This will make us lean, innovative and hungry for the next phase of growth,” Musk reportedly wrote in the message to the workforce about the job cuts. He hates the step, but it is necessary. The company grew quickly and continued to expand by building numerous factories worldwide. “Due to this rapid growth, there was a duplication of roles and tasks in certain areas,” explains the CEO. Tesla did not immediately respond to a request for comment.
Competition from China
The news follows a quarterly report in which Tesla significantly missed delivery estimates and posted a rare year-over-year decline in sales. While Tesla doesn’t break down sales by geographic region, the biggest decline appears to be in China.
There had already been speculation about corresponding job cuts. “Electrek” reported on Sunday that production shifts for the “Cybertruck” model had been cut at the Gigafactory in the US state of Texas. Last month, Elon Musk’s company also cut production in the Chinese metropolis of Shanghai.
Tesla is struggling with competition from industry newcomers such as smartphone manufacturer Xiaomi in China and the growing range of electric cars. The effect of price cuts and discounts is now dwindling as Americans are only slowly refreshing their aging model range and will only come up with important new products next year. According to insiders, Tesla has also abandoned its plan to build a low-cost electric car for the mass market.