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Tesla plans to cut more than a tenth of all jobs worldwide, reports Handelsblatt. The decision comes due to the slowdown in the electric car market and the in-depth review of costs and productivity. The plant in Grünheide is also affected, where, according to “Handelsblat”, around 3,000 of the 12,500 employees are to be laid off.
According to a report, Tesla boss Elon Musk wants to cut more than a tenth of all jobs in the company worldwide due to the slump in the electric car market. It is very important to look at every aspect of the company in terms of costs and productivity, the industry portal Electrek quoted on Monday from an internal email from the company boss. After a thorough examination, the company decided to reduce the number of jobs by more than ten percent. This also reported on the email “Handelsblatt”. According to its own information, Tesla employed a good 140,000 people at the end of last year.
Tesla is feeling the effects of the price war in the largest car market, China, and delivered surprisingly fewer vehicles in the first quarter than a year earlier, at just under 387,000 cars. Even before that, doubts about the market’s pace of growth had increased following years of strong growth.
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Around 3,000 employees are affected in Germany
In the USA, customers are increasingly turning to combustion and hybrid vehicles. In China, Tesla is facing more competition from domestic manufacturers and in Europe, Tesla initially had to temporarily suspend production in Grünheide near Berlin due to supply bottlenecks for components caused by the diversion of ships following attacks by Yemeni Houthi rebels in the Red Sea and an attack on the factory’s power supply . According to “Handelsblatt”, Grünheide is also affected by job cuts. Around 3,000 of the 12,500 employees there would be laid off, the newspaper reported, citing two internal sources.
With the rapid growth of the past few years, there have been duplicate functions in some areas, according to Electrek in Musk’s email. The job cuts would allow the company to be lean, innovative and hungry for the next phase of growth.
hr/dpa